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112 orders · Page 1 of 3
The Tribunal held that proceeding with the assessment without disposing of the assessee's objections against reopening renders the assessment order void. Therefore, the assessment order was set aside.
The Tribunal held that the expenditure on 'Star Diagnostic' should be allowed as revenue expenditure, following a consistent approach from earlier years. For transfer pricing, it directed the Assessing Officer to apply an aggregate approach to benchmark all international transactions together using the TNMM method. Royalty payments were also allowed as revenue expenditure.
The Tribunal held that the provisions of Section 56(2)(vii)(b) are attracted based on the date of sale deed registration. However, considering the provisos, the stamp duty value on the date of the agreement (2008) should be used, not the date of registration (2015). Since the stamp value in 2008 was less than the consideration, no addition is warranted.
The Tribunal held that if the payments for IT support services were not in the nature of royalty or FTS, then there was no requirement to deduct tax at source. Consequently, the assessee could not be held in default.
The Tribunal held that the Assessing Officer failed to record proper satisfaction and did not specify the exact limb of section 271(1)(c) under which the penalty was levied. Therefore, the penalty was unsustainable in law.
The tribunal held that the penalty notice was void ab-initio due to its ambiguity in not specifying whether the penalty was for concealment of income or furnishing inaccurate particulars. Furthermore, penalty cannot be imposed solely on the basis of a disallowance made under Section 14A, especially when the expenses were claimed bona fide.
The Tribunal held that the Assessing Officer erred in invoking Section 10A(7) read with Section 80IA(10) without establishing a specific arrangement leading to more than ordinary profits. Regarding Section 14A, the Tribunal followed a Special Bench decision stating that only actual expenditure, not Rule 8D calculations, is disallowed for book profit computation.
The Tribunal held that since the assessee has now procured the completion certificate, the matter should be restored to the Assessing Officer for fresh adjudication. This decision was based on a similar precedent where additional evidence was admitted.
The Tribunal restored the matter back to the Assessing Officer to decide the issue on merits, granting the assessee one more opportunity to present their case, considering the principle of natural justice.
The Tribunal held that the expenditure on 'Star Diagnostic' should be allowed as revenue expenditure, following a consistent approach from earlier years. For transfer pricing, it directed the Assessing Officer to apply an aggregate approach to benchmark all international transactions together using the TNMM method. Royalty payments were also allowed as revenue expenditure.
The Tribunal held that the CIT(A)'s order was fair and reasonable, upholding the additions made. The grounds related to natural justice and procedural issues were dismissed as the assessee had been given opportunities and the transfer of jurisdiction was not found erroneous.
The Tribunal held that no ad hoc addition at a fixed percentage is warranted for bogus purchases. The addition should be based on the difference between the gross profit rates of genuine and hawala purchases.
The Tribunal held that the addition for bogus purchases should not be a flat rate but based on the difference in gross profit rates between genuine and bogus purchases. The matter was restored to the Assessing Officer for this calculation.
The Tribunal held that since the quantum additions were remitted back to the Assessing Officer, the penalty issue should also be restored to the Assessing Officer for fresh adjudication.
The Tribunal held that a statement recorded during a survey under Section 133A has no evidentiary value on its own. It also found that the assessee had disclosed household expenses in his capital account, which were close to the AO's estimation.
The Tribunal held that if the payments for IT support services were not in the nature of royalty or FTS, then there was no requirement to deduct tax at source. Consequently, the assessee could not be held in default.
The Tribunal held that the assessee had already offered the enhanced value of the WIP for taxation by including it in the closing stock. Therefore, a separate addition for the increase was erroneous.
The Tribunal held that the expenditure on 'Star Diagnostic' should be allowed as revenue expenditure, following a consistent approach from earlier years. For transfer pricing, it directed the Assessing Officer to apply an aggregate approach to benchmark all international transactions together using the TNMM method. Royalty payments were also allowed as revenue expenditure.
The tribunal held that the assessee was not given a proper opportunity to present their case regarding the valuation report. Therefore, the matter was restored to the CIT(A) for a fresh decision on merits.
The Tribunal considered the withdrawal letter filed by the assessee and, with no objection from the Revenue, allowed the assessee's request to withdraw the appeal.
The Tribunal held that since the quantum additions were remitted back to the Assessing Officer, the penalty issue should also be restored to the Assessing Officer for fresh adjudication.
The Tribunal held that the assessee acquired rights in the land in 1997, as evidenced by agreements and payment, even though the registered document was executed later. Therefore, the gains were to be treated as long-term capital gains.
The Tribunal found that the Assessing Officer rejected the assessee's explanation without assigning reasons. Considering the facts, the assessee had provided a valid explanation for the source of investment through past savings, sale of gold, and hand-loans.
The Tribunal held that the Assessing Officer lacked evidence for estimating suppressed sales outside the books and that the CIT(A) could not introduce a new source of income by way of enhancement on excess stock, as it was not considered by the AO.
The Tribunal held that the quantum appeal was academic as the assessee did not challenge the final computation of income. Regarding the penalty, the Tribunal found that the assessee acted on a bona fide opinion from its auditors and there was no mala fide intention to conceal income.
The Tribunal followed its prior decision in the SSK Group Cases, specifically the lead case of Majalgaon Sahakari Sakhar Karkhana Limited, which addressed similar issues.
The Tribunal held that the services were rendered by Walter AG, a part of the Sandvik group, and therefore, the arm's length price of the transaction could not be taken at Nil. The Tribunal also considered an alternate plea for aggregation of transactions.
The Tribunal held that since the trail of goods and payments through banking channels were demonstrated, the addition should be estimated at 10% of the alleged bogus purchases, not the 25% confirmed by the CIT(A).
The Tribunal held that advances received on land sale agreements, where the assessee still had unfulfilled obligations and had not transferred possession or title, could not be treated as income in the current year. The income would only be taxable upon completion of the obligations and transfer of the property.
The Tribunal followed its prior decision in the SSK Group Cases, specifically the lead case of Majalgaon Sahakari Sakhar Karkhana Limited, which addressed similar issues.
The Tribunal held that since the trail of goods and payments through banking channels were demonstrated, the addition should be estimated at 10% of the alleged bogus purchases, not the 25% confirmed by the CIT(A).
The Tribunal held that advances received on land sale agreements, where the assessee still had unfulfilled obligations and had not transferred possession or title, could not be treated as income in the current year. The income would only be taxable upon completion of the obligations and transfer of the property.
The Tribunal held that the penalty notice was ambiguous as it did not specify whether the penalty was for concealment of income or furnishing inaccurate particulars. Following the jurisdictional High Court's ruling, the penalty was set aside.
The Tribunal set aside the ex-parte order of the CIT(Appeals) and restored the matter for adjudication. The assessee was directed to appear before the CIT(Appeals) with relevant documents.
The Tribunal noted that the assessee also operated using hired trucks and that the cash deposits represented transportation receipts from which only a commission was retained. Since additional evidence was presented that was not considered by the lower authorities, the matter was restored to the AO for fresh assessment.
The Tribunal held that the quantum appeal was academic as the assessee did not challenge the final computation of income. Regarding the penalty, the Tribunal found that the assessee acted on a bona fide opinion from its auditors and there was no mala fide intention to conceal income.
The Tribunal noted that the assessee also operated using hired trucks and that the cash deposits represented transportation receipts from which only a commission was retained. Since additional evidence was presented that was not considered by the lower authorities, the matter was restored to the AO for fresh assessment.
The Tribunal condoned the delay, accepting the assessee's explanation of being betrayed by his CA. The matter was restored to the AO for a fresh assessment with an opportunity for the assessee to be heard.
The Tribunal held that certain companies included by the TPO as comparables were not functionally similar to the assessee's software development services. The issue of disallowance under Section 40(a)(i)/(ia) for payments to the AE was remitted back to the AO for fresh adjudication.
The Tribunal held that while the purchases might have been from the grey market, the addition should be restricted to 10% of the alleged bogus purchases, following a previous decision. The CIT(A)'s order to restrict the disallowance to 10% was considered fair and reasonable.
The tribunal held that additions made without granting the assessee an opportunity for cross-examination are unsustainable. This principle was based on Supreme Court and previous tribunal decisions.
The Tribunal held that while the purchases might have been from the grey market, the addition should be restricted to 10% of the alleged bogus purchases, following a previous decision. The CIT(A)'s order to restrict the disallowance to 10% was considered fair and reasonable.
The Tribunal held that since the investments were reflected in the balance sheet, it was not a case of concealment of income but at most furnishing inaccurate particulars. The penalty levied under Section 271(1)(c) was therefore quashed.
The Tribunal upheld the order of the CIT(A) and dismissed the assessee's appeal. No material was presented by the assessee to controvert the findings of the lower appellate authority.
The Tribunal held that while the purchases might have been from the grey market, the addition should be restricted to 10% of the alleged bogus purchases, following a previous decision. The CIT(A)'s order to restrict the disallowance to 10% was considered fair and reasonable.
The Tribunal held that certain companies included by the TPO as comparables were not functionally similar to the assessee's software development services. The issue of disallowance under Section 40(a)(i)/(ia) for payments to the AE was remitted back to the AO for fresh adjudication.
The Tribunal condoned the delay in filing the appeal. It dismissed two grounds as not pressed and partly allowed the third ground concerning Section 14A disallowance. The disallowance of interest was deleted, but the disallowance of 1/2% of average investment value was confirmed.
The Tribunal upheld the CIT(A)'s order, stating that since the assessee did not debit the interest paid to its Profit and Loss Account nor claimed any deduction for it, there was no basis for disallowing the expenditure. The Revenue failed to provide material to controvert this finding.
The Tribunal, following its own precedents for earlier assessment years, directed the Assessing Officer to restrict the disallowance of commission payments to 10% of the total amount.
The Tribunal held that the issue was covered by its earlier decisions for assessment years 2006-07 to 2010-11. The Assessing Officer was directed to apply the ratio laid down by the Tribunal and verify the margins of external comparables.