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67 orders · Page 2 of 2
The CIT(A) upheld the AO's order, adding the unexplained cash deposits to the assessee's total income under Section 69A of the Income Tax Act. The assessee appealed this order, but did not appear for hearings before the AO, CIT(A), or the Tribunal, indicating a lack of interest in pursuing the appeal.
The Tribunal noted that while there was a failure to comply with notices under Section 142(1), the assessee contended they were not aware of these notices. The Tribunal found merit in this plea, considering the notices were issued through the ITBA portal and the assessee's awareness of the assessment proceedings. The Tribunal held that penalty should not be imposed for each and every non-compliance but rather for the first instance, especially if there's no deliberate defiance.
The Tribunal condoned the delay of 381 days, citing sufficient cause due to the assessee's lack of awareness of online proceedings and the need for substantial justice. The matter was remanded back to the Assessing Officer for fresh adjudication.
The Tribunal noted that while Section 44AB mandates an audit for turnovers exceeding a certain limit, Section 273B provides for reasonable cause to be considered for non-compliance. Citing various judicial precedents, the Tribunal found that the assessee had a bona fide belief and did not have a willful intent to evade the law, thus quashing the penalty.
The Tribunal noted that the CIT(E)'s order was ex-parte and that the assessee may not have been properly served with notices or given sufficient opportunity to present their case. The Tribunal decided to set aside the CIT(E)'s order.
The Tribunal held that the Assessing Officer (AO) had initiated penalty proceedings under Section 272A(1)(d) for non-compliance with notices issued under Section 142(1). The Commissioner of Income Tax (Appeals) [CIT(A)] had dismissed the appeal due to delay in filing, without deciding on merits. The Tribunal noted contradictions in the CIT(A)'s order regarding admission of the appeal.
The Tribunal noted that the CIT(E)'s order was ex-parte and that the assessee may not have been properly served with notices or given sufficient opportunity to present their case. The Tribunal decided to set aside the CIT(E)'s order.
The Tribunal condoned the delay in filing the appeal, considering the interest of justice and the assessee's claim of unawareness. However, the Tribunal noted the assessee's lack of due care and attention in pursuing the case and non-compliance with notices.
The Tribunal condoned the delay in filing the appeal, imposing a cost of Rs. 5000 on the assessee for non-compliance. The order of the CIT(A) was set aside, and the matter was remanded back to the Assessing Officer for fresh adjudication on merits.
The Tribunal held that the CIT(Exemption)'s rejection of the assessee's applications as non-maintainable was not legally sustainable. It directed the CIT(Exemption) to treat the applications as valid and maintainable, filed within the extended period, and dispose of them on merits.
The Tribunal held that the CIT(Exemption)'s approach of treating the second application as non-maintainable based on the rejection of the first application was incorrect. The second application was a fresh and independent application filed within the prescribed extended time. The initial error was procedural, and the subsequent filing under the correct provision rectified it. Therefore, the applications should have been considered on merits.
The Tribunal deleted the additions made by the Assessing Officer and upheld by the CIT(A). The Tribunal did not adjudicate on the grounds related to the reopening of the assessment.
The Tribunal noted that the assessee claimed to have amended the religious object and stated no expenditure was incurred on religious activities. However, no evidence was provided to support this claim. Therefore, the Tribunal directed the CIT(E) to examine the financial statements to ascertain expenditure on religious activities.
The Tribunal noted that the assessee's modus operandi involved facilitating illicit cash transactions, which were not substantiated as legitimate business income. The Tribunal referred to previous ITAT decisions where similar unexplained credits were taxed in full in the hands of the assessee.
The Tribunal noted that the rejection was based on non-compliance of notice and referred to several case laws. It was held that Section 13 of the Income-tax Act is applicable at the assessment stage, not the registration stage, and that the Commissioner must distinguish between registration requirements and benefit claims. The Tribunal also noted that registration is not a prerequisite for claiming benefits under Sections 11 and 12.
The Tribunal held that the creation of a reserve for bad and doubtful debts, even under a different nomenclature like 'Special Bad Debts Reserve Fund', does not disentitle the assessee from claiming the deduction under Section 36(1)(viia). The deduction claimed was in accordance with the law.
The Tribunal held that the conversion of a private limited company to an LLP makes the LLP the successor entity, inheriting all liabilities and pending legal proceedings. Regarding the additions, the Tribunal agreed that only the profit element should be added for purchases from unregistered dealers, modifying the addition. The other additions were confirmed.