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282 orders · Page 5 of 6
The Tribunal held that the TPO erred in determining the arm's length price of the management services at NIL. It was also noted that the DRP incorrectly invoked Section 37 of the Act for disallowance, as the Assessing Officer had not specifically done so.
The Tribunal held that the Assessing Officer made an addition of Rs. 2,17,86,112/- under Section 69A as unexplained money because the assessee could only explain the source of a portion of the total deposits. The assessee argued that all necessary documents were submitted but not properly considered.
The Tribunal held that a fair opportunity was not granted to the assessee and that the matter should be remitted back to the Ld. CIT(E) for fresh adjudication. The assessee was directed to remain vigilant and avoid unnecessary adjournments.
The Tribunal held that the Assessing Officer made an addition of Rs. 2,17,86,112/- under Section 69A as unexplained money because the assessee could only explain the source of a portion of the total deposits. The assessee argued that all necessary documents were submitted but not properly considered.
The Tribunal held that the PCIT could not invoke Section 263 jurisdiction when the Assessing Officer had raised specific queries on the issues and the assessee had provided detailed replies. The assessment order was not erroneous or prejudicial to the revenue in such circumstances.
The Tribunal found that the Assessing Officer had indeed called for details regarding work-in-progress and accounting methods during the assessment proceedings. Therefore, it was not a case of lack of inquiry, and the PCIT's order was considered erroneous.
The Tribunal held that although the assessee did not make submissions before the lower authorities, in the interest of justice, the issue should be restored to the file of the Ld. Addl/JCIT(A) to grant one final opportunity to the assessee to substantiate its case.
The Tribunal found that the additional evidence filed by the assessee was not considered by the CIT(A) due to a possible timing issue. Given the circumstances of the assessment being completed during the Covid-19 pandemic and the potential for the additional evidence to prove the genuineness, identity, and creditworthiness of the creditors, the Tribunal set aside the order and remanded the matter back to the Assessing Officer.
The Tribunal found that the CIT(A)/NFAC did not properly address the assessee's claim that the bank account belonged to his individual capacity and that the transactions were disclosed in his individual return. Therefore, the matter was restored to the CIT(A)/NFAC for fresh adjudication.
The Tribunal held that the membership fees and share transfer fees received by the assessee are capital in nature and not revenue receipts. This decision was based on previous judgments of the Tribunal and the Supreme Court.
The Tribunal condoned the delay in filing the appeal, finding reasonable cause due to the death of the counsel. The appeal was restored to the file of the CIT(A) with a direction to grant one final opportunity to the assessee to substantiate their case.
The Tribunal held that a fair opportunity was not granted to the assessee and that the matter should be remitted back to the Ld. CIT(E) for fresh adjudication. The assessee was directed to remain vigilant and avoid unnecessary adjournments.
The Tribunal restored both the quantum appeal (against addition) and the penalty appeal (under Section 271(1)(c)) back to the file of the Ld. CIT(A)/NFAC. It directed the CIT(A) to grant the assessee one final opportunity to present requisite details and directed the assessee to comply without seeking further adjournments.
The Tribunal accepted that there were valid reasons for non-compliance, such as the assessee's personal circumstances and issues with the tax practitioner. The assessment order was set aside for denovo adjudication.
The Tribunal held that a development agreement, where the developer is merely granted a license to construct, does not constitute a transfer under Section 2(47)(v) of the Income Tax Act. Therefore, capital gains do not arise in the year of the agreement but only upon actual transfer of possession or sale of the constructed property.
The Tribunal condoned the delay in filing the appeal, noting the assessee's unfamiliarity with technical proceedings and legal counsel search. It also found that the CIT(E) had provided an unreasonably short period for compliance, violating principles of natural justice.
The Tribunal noted that the assessee had declared a closing cash balance of Rs.13,74,587/- in the preceding assessment year, which was also supported by the ITR-4. The Tribunal found that this documentation was not properly considered by the CIT(A).
The Tribunal held that interest income earned by a cooperative society on deposits made out of surplus funds with cooperative banks, as well as scheduled banks, qualifies for deduction under Section 80P(2)(a)(i) and Section 80P(2)(d) of the Act. Consequently, the grounds of appeal were allowed.
The Tribunal observed that the assessee was not given adequate opportunity of being heard. Consequently, the Tribunal set aside the order of the Ld. CIT(E) and remitted the matter back for fresh adjudication, instructing the CIT(E) to provide proper opportunity to the assessee and directing the assessee to be vigilant.
The Tribunal acknowledged the assessee's claim of lack of proper opportunity. It set aside the impugned order and directed the CIT(E) to re-adjudicate the Section 80G(5) application after providing a due opportunity of hearing to the assessee and deciding the matter on its merits. The appeal was allowed for statistical purposes.
The Tribunal held that there was a reasonable cause for the delay and condoned it. The appeal was restored to the CIT(A) for fresh adjudication on merits, with a direction for the assessee to be vigilant.
The Tribunal held that the CIT(E) did not provide adequate opportunity to the assessee before passing an ex-parte order. The order of CIT(E) was set aside, and the issue was remitted back for fresh adjudication, with a direction for a speaking order and proper opportunity to be given.
The assessee had opted for the Direct Tax Vivad Se Vishwas Scheme, 2024. With no objection from the DR, the request for withdrawal was allowed.
The Tribunal held that the appeal against the order u/s. 154 was to be dismissed as there was no apparent mistake in the assessment order. For the second appeal, the Tribunal restored the issue to the CIT(A) for fresh adjudication, allowing the assessee an opportunity to present evidence.
The Tribunal noted that the addition of Rs.8,10,000/- was deleted in a previous appeal. Consequently, the penalty related to this addition was also deleted. For the undisclosed interest income, the penalty confirmed was Rs.10,179/-, while the remaining Rs.1,58,722/- was deleted.
The Tribunal condoned the delay in filing the appeal. It set aside the CIT(A)'s order and remanded the matter back to the Assessing Officer for fresh assessment. The AO is directed to provide the assessee a reasonable opportunity to produce explanations and evidence for claimed expenditures and deductions, considering the circumstances like the uneducated Chairman and nature of payments to small vendors.
The Tribunal admitted additional evidence submitted by the assessee, including a sale deed for Flat B-16 and a possession certificate for Flats D-2601 and D-2602, which indicated the flats were not in a letable condition or possession was not obtained prior to the relevant dates.
The Tribunal held that the assessee adequately explained the source of the Rs.8,10,000/- cash deposits as proceeds from the sale of rural agricultural land, which included 'on-money'. Since the income from the sale of rural agricultural land is exempt from tax, the Tribunal deleted the impugned addition made under Section 69A.
The Income Tax Appellate Tribunal (ITAT) permitted the assessee to withdraw the appeal, as the Departmental Representative had no objection. Consequently, the grounds of appeal raised by the assessee were dismissed as withdrawn.
The Tribunal held that the appeal against the order u/s. 154 was to be dismissed as there was no apparent mistake in the assessment order. For the second appeal, the Tribunal restored the issue to the CIT(A) for fresh adjudication, allowing the assessee an opportunity to present evidence.
The Tribunal held that the issuance of a valid notice under Section 143(2) is mandatory and a prerequisite for the Assessing Officer (AO) to assume jurisdiction for assessment proceedings under Section 143(3). The Tribunal noted that the initial notice under Section 143(2) dated 03.09.2014 was issued to a wrong address, which was later admitted by the revenue authorities. Despite the revenue's reliance on the principle of deemed service for notices sent by registered post, the Tribunal found that the revenue failed to establish valid service. The Tribunal referred to the judgments of the Hon'ble Bombay High Court in CIT v. Abacus Distribution Systems (India) (P.) Ltd. and Asstt. CIT v. Geno Pharmaceuticals Ltd., and the Hon'ble Apex Court in ACIT Vs. M/s. Hotel Blue Moon, emphasizing that non-issuance of a valid notice under Section 143(2) within the statutory time limit is not a curable procedural defect but vitiates the entire assessment proceedings, rendering them void ab-initio. Consequently, the Tribunal quashed the assessment order dated 31.03.2016 passed by the AO for AY 2013-14, deleted the impugned additions, and set aside the finding of the CIT(A). The legal ground raised by the assessee challenging the validity of the assessment proceedings due to non-service of a valid notice under Section 143(2) within the statutory time limit was allowed. All remaining grounds were rendered academic.
The Tribunal observed that the Ld. CIT(E) had not properly examined the appellant's submissions or granted a fair opportunity to be heard. Consequently, the Tribunal set aside the Ld. CIT(E)'s order and remanded the matter for fresh adjudication, directing the Ld. CIT(E) to provide the appellant a proper opportunity to substantiate its case with requisite details.
The Tribunal held that amortization of premium paid on government securities is an allowable business expense as per RBI guidelines and established judicial precedents. It also allowed the claim for tax-free dividend income earned from mutual funds.
The Tribunal, through the Third Member's majority opinion, held that the satisfaction recorded by the AO of the searched person was not in accordance with the law. Specifically, the satisfaction note did not mention that any books of account or documents seized or requisitioned pertained to the assessee or that any information contained therein related to the assessee, as required by clause (b) of Section 153C(1). The Third Member found the satisfaction note of the searched person to be bald and without any reference to the assessee, despite the AO of the searched person and the AO of the other person being the same. The Tribunal ruled that the initiation of proceedings under Section 153C was void ab initio. The argument of the Revenue regarding Section 292B was rejected as it was not applicable to jurisdictional issues. Consequently, the appeals of the assessee were allowed.
The Tribunal, through the Third Member's majority opinion, held that the satisfaction recorded by the AO of the searched person was not in accordance with the law. Specifically, the satisfaction note did not mention that any books of account or documents seized or requisitioned pertained to the assessee or that any information contained therein related to the assessee, as required by clause (b) of Section 153C(1). The Third Member found the satisfaction note of the searched person to be bald and without any reference to the assessee, despite the AO of the searched person and the AO of the other person being the same. The Tribunal ruled that the initiation of proceedings under Section 153C was void ab initio. The argument of the Revenue regarding Section 292B was rejected as it was not applicable to jurisdictional issues. Consequently, the appeals of the assessee were allowed.
The Tribunal noted that in similar past cases for the assessee, the matter was remanded for quantification of deduction u/s 80P. However, for the current assessment year, due to the return not being filed by the due date, the deduction u/s 80P was disallowed. The additions under section 44AD were set aside and remanded for fresh assessment.
The Tribunal allowed the assessee's request to withdraw the appeals, noting that the Departmental Representative had no objection. It was clarified that the assessee could file miscellaneous applications for recalling if their scheme applications were rejected.
The Tribunal observed that issues regarding employee's contribution to PF & ESIC and deduction u/s 80P(2)(d) require verification. Considering the need for detailed examination, the Tribunal decided to remit all issues back to the Assessing Officer.
The Tribunal noted that in similar past cases for the assessee, the matter was remanded for quantification of deduction u/s 80P. However, for the current assessment year, due to the return not being filed by the due date, the deduction u/s 80P was disallowed. The additions under section 44AD were set aside and remanded for fresh assessment.
The Tribunal condoned the remaining delay considering the facts and reasons presented. They also decided to adjudicate the issue on merits, finding that the penalty arose due to the assessee having two PAN numbers: one for a firm and another for a trust. The Tribunal deleted the penalty levied under Section 271F.
The Tribunal noted that the ground challenging the validity of the reopening notice under Section 148 was raised for the first time before it. While the AO's initial assessment of transaction value differed from the final figure, the Tribunal restored the issue of validity of reopening and the notice to the CIT(A) for adjudication.
The Tribunal held that the assessee has the option to choose between the DCF and NAV methods for determining the fair market value of shares as per Rule 11UA(2). The AO cannot unilaterally change the method chosen by the assessee without proper justification or providing an opportunity for a fresh valuation report.
The Tribunal allowed the assessee's request to withdraw the appeals, noting that the Departmental Representative had no objection. It was clarified that the assessee could file miscellaneous applications for recalling if their scheme applications were rejected.
The Tribunal held that penalty cannot be imposed on disallowance of expenses. Further, since a coordinate bench had deleted one of the additions forming the basis of the penalty and another addition was based on estimated disallowance, the basis for levying the penalty did not survive.
The Tribunal held that the PCIT was not justified in setting aside the assessment order. It found that the Assessing Officer had made inquiries and applied his mind, even if the assessment order lacked detailed discussion on every item.
The Tribunal condoned the delay, citing the Supreme Court's decision in Collector, Land Acquisition vs. Mst. Katiji & Ors., prioritizing substantial justice. The appeal was admitted for adjudication, and the issue was restored to the CIT(A)/NFAC for a final opportunity to the assessee to present its case.
The Tribunal set aside the CIT(A)'s order for several unsecured loans and remanded them back to the Assessing Officer for fresh adjudication. However, for two specific unsecured loans, the Tribunal upheld the CIT(A)'s deletion of additions.
The Tribunal held that the CIT(A)'s order was cryptic and that the AO should not have disregarded the Discounted Cash Flow (DCF) method chosen by the assessee without proper justification. The matter was restored to the CIT(A) for fresh adjudication.
The Tribunal held that the CIT(A)'s order was cryptic and that the AO should not have disregarded the Discounted Cash Flow (DCF) method chosen by the assessee without proper justification. The matter was restored to the CIT(A) for fresh adjudication.
The Tribunal held that the CIT(A)'s order was cryptic and that the AO should not have disregarded the Discounted Cash Flow (DCF) method chosen by the assessee without proper justification. The matter was restored to the CIT(A) for fresh adjudication.