RAJENDRA MAGANBHAI PATEL,MUMBAI vs. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE INTERNATIONAL TAXATION, VADODARA

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita Nos.105/Ahd/2023 & 106/Ahd/2023 िनधा"रण वष" /Assessment Years : 2013-14 & 2015-16 Respectively Rajendra Maganbhai Patel The Asstt.Commissioner Of बनाम/ C-1/8, Bhadran Nagar Income Tax, Circle V/S. S.V. Road, Malad West International Taxation, Mumbai – 400 064 Vadodara Maharashtra "थायी लेखा सं./Pan: Asipp 5675 N (अपीलाथ%/ Appellant) (&' यथ%/ Respondent) Assessee By : Shri Tushar Hemani, Sr.Advocate & Shri Parimalsinh N. Parmar, Ar Revenue By : Shri Prathvi Raj Meena, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 26 /02/2025 घोषणा की तारीख /Date Of Pronouncement: 04 /03/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: Both These Appeals By The Assessee Pertain To Assessment Years (Ays) 2013-14 & 2015-16 & Are Directed Against The Final Assessment Orders Passed By The Assessing Officer [Hereinafter Referred To As “Ao”] Under Section 147 R.W.S. 144C(13) Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"], Pursuant To The Directions Of The Dispute Resolution Panel [Hereinafter Referred To As “Drp”]. The Core Issue In Both The Appeals Concerns The Addition Made By The Ao On Account Of Credits In The Assessee’S Non- Resident External (Nre) Bank Accounts.

26,449/- - TDS Return Payments to Rs. 9,50,243/- Rs. 10,47,988/- Non-Residents - Time Deposit with Banking Rs. 11,76,46,084/- NIL Co. - Credit Card Payments: Rs. 3,04,662/- Rs. 3,96,515/- Addition Proposed by AO in Rs. 4,69,37,210/- Rs. 3,77,60,000/- Draft order Additions Directed

XCELLON EDUCATION LIMITED,,AHMEDABAD vs. ADDL. CIT, TDS,, AHMEDABAD

The appeal of the assessee is allowed

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

26 (SC)". If there is “reasonable cause” for dfault, penalty should not be levied: S.273B provides that in case reasonable cause is shown, penalty u/s 272A(2) / 271C must not be levied. Assessee could not deposit TDS with the Govt. treasury within the prescribed time limit owing to financial crunch. Thus, there was a reasonable cause for default. Under such

XCELLON EDUCATION LIMITED,,AHMEDABAD vs. ADDL. CIT, TDS,, AHMEDABAD

The appeal of the assessee is allowed

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

26 (SC)". If there is “reasonable cause” for dfault, penalty should not be levied: S.273B provides that in case reasonable cause is shown, penalty u/s 272A(2) / 271C must not be levied. Assessee could not deposit TDS with the Govt. treasury within the prescribed time limit owing to financial crunch. Thus, there was a reasonable cause for default. Under such

XCELLON EDUCATION LIMITED,,AHMEDABAD vs. ADDL. CIT, TDS,, AHMEDABAD

The appeal of the assessee is allowed

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

26 (SC)". If there is “reasonable cause” for dfault, penalty should not be levied: S.273B provides that in case reasonable cause is shown, penalty u/s 272A(2) / 271C must not be levied. Assessee could not deposit TDS with the Govt. treasury within the prescribed time limit owing to financial crunch. Thus, there was a reasonable cause for default. Under such

XCELLON EDUCATION LIMITED,,AHMEDABAD vs. ADDL. CIT, TDS,, AHMEDABAD

The appeal of the assessee is allowed

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyal

26 (SC)". If there is “reasonable cause” for dfault, penalty should not be levied: S.273B provides that in case reasonable cause is shown, penalty u/s 272A(2) / 271C must not be levied. Assessee could not deposit TDS with the Govt. treasury within the prescribed time limit owing to financial crunch. Thus, there was a reasonable cause for default. Under such

DCIT, CIRCLE-1(3), , AHMEDABAD vs. EDELWEISS BROKING LTD.(ON BEHALF OF AMALGAMATING COMPANY EDELWEISS FINANCIAL ADVISORS LTD.), AHMEDABAD

Appeal of the Revenue is dismissed whereas the ground of appeal of the assessee is allowed

Bench: Shri Mahavir Prasad & Shri Wassem Ahmedआयकर अपील सं./I.T.A. No. 2021/Ahd/2017 ("नधा"रण वष" / Assessment Year: 2013-14) M/S. Edelweiss Broking Ltd. Dcit बनाम/ (On Behalf Of Amalgamating Cricle-1(3), Vs. 1St Floor, B-109, Company, Edelweiss Financial Advisors Ltd.) Pratyaksh Kar Bhavan, Nr. 801-804, 8Th Floor, Abhishree Panjrapole, Ambawadi, Avenue, Opp. Hanumanji Ahmedabad-380015 Temple, Nehrunagar, Ambawadi, Ahmedabad- 380015 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabce9421H .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

Section 194-I of the Act as alleged by the authorities below. Accordingly no disallowance on account of non-deduction of TDS is warranted. 129. Before parting, it is also important to note that the ITAT in the own case of the assessee for the Assessment Year 2008-09 in ITA No. 1718/AHD/2011 has set aside the identical issue

M/S. EDELWEISS BROKING LIMITED,AHMEDABAD vs. THE DCIT, CIRCLE-1(3), AHMEDABAD

Appeal of the Revenue is dismissed whereas the ground of appeal of the assessee is allowed

Bench: Shri Mahavir Prasad & Shri Wassem Ahmedआयकर अपील सं./I.T.A. No. 2021/Ahd/2017 ("नधा"रण वष" / Assessment Year: 2013-14) M/S. Edelweiss Broking Ltd. Dcit बनाम/ (On Behalf Of Amalgamating Cricle-1(3), Vs. 1St Floor, B-109, Company, Edelweiss Financial Advisors Ltd.) Pratyaksh Kar Bhavan, Nr. 801-804, 8Th Floor, Abhishree Panjrapole, Ambawadi, Avenue, Opp. Hanumanji Ahmedabad-380015 Temple, Nehrunagar, Ambawadi, Ahmedabad- 380015 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabce9421H .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

Section 194-I of the Act as alleged by the authorities below. Accordingly no disallowance on account of non-deduction of TDS is warranted. 129. Before parting, it is also important to note that the ITAT in the own case of the assessee for the Assessment Year 2008-09 in ITA No. 1718/AHD/2011 has set aside the identical issue

ATUL LIMITED,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

In the result, the appeal is partly allowed

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2017-18 Atul Limited Acit, Cir.1(1)(1) Atul House, Gi Patel Mark Vs Ahmedabad. Mithila Society, Ahmedabad. Pan : Aabca 2390 M (Applicant) (Responent) Assessee By : Shri Bandish Soparkar, Ar : Shri Prathvi Raj Meena, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 01/05/2025 घोषणा क" तारीख /Date Of Pronouncement: 08/05/2025 आदेश/O R D E R आदेश आदेश आदेश

10 (other than provisions contained in clause 38 thereof) or section 11 or section 12 apply. In this regard, we draw support from the coordinate bench’s decision in assessee’s own case for A.Y. 2010–11, where in paragraphs 46 to 51, the Bench categorically noted that the provisions of section 115JB are self-contained and that disallowance made

DCIT, CENTRAL CIRCLE-1(4), AHMEDABAD, AHMEDABAD vs. HINDVA BUILDERS, AHMEDABAD

In the result, all the four appeals of the Revenue are hereby dismissed

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinha

section 145 of the I.T. Act. 5.8 Hence, looking to the nature of various business, various discrepancies found during the survey proceedings, various judicial pronouncements (supra), a settled issue that in case of unrecorded sales, the profit margin remains higher than the recorded sales, the lower profit margin shown in the books of account as compared to peers, the location

DEPUTY COMMISSIONER OF INCOME TAX (CENTRAL CIRCLE)-1(4), AHMEDABAD, AHMEDABAD vs. HINDVA BUILDERS, AHMEDABAD

In the result, all the four appeals of the Revenue are hereby dismissed

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinha

section 145 of the I.T. Act. 5.8 Hence, looking to the nature of various business, various discrepancies found during the survey proceedings, various judicial pronouncements (supra), a settled issue that in case of unrecorded sales, the profit margin remains higher than the recorded sales, the lower profit margin shown in the books of account as compared to peers, the location

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), AHMEDABAD, AHMEDABAD vs. HINDVA BUILDERS, AHMEDABAD

In the result, all the four appeals of the Revenue are hereby dismissed

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinha

section 145 of the I.T. Act. 5.8 Hence, looking to the nature of various business, various discrepancies found during the survey proceedings, various judicial pronouncements (supra), a settled issue that in case of unrecorded sales, the profit margin remains higher than the recorded sales, the lower profit margin shown in the books of account as compared to peers, the location

DCIT, CENTRAL CIRCLE-1(4), AHMEDABAD, AHMEDABAD vs. HINDVA BUILDERS, AHMEDABAD

In the result, all the four appeals of the Revenue are hereby dismissed

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinha

section 145 of the I.T. Act. 5.8 Hence, looking to the nature of various business, various discrepancies found during the survey proceedings, various judicial pronouncements (supra), a settled issue that in case of unrecorded sales, the profit margin remains higher than the recorded sales, the lower profit margin shown in the books of account as compared to peers, the location

ARVIND LIFESTYLE BRANDS LTD.,,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, AHMEDABAD

In the result the appeal filed by the assessee is partly allowed

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedsl. Ita No(S) Asset. Appeal(S) By No(S) Year(S) Appellant Vs. Respondent Appellant Respondent 1. 1817/Ahd/2016 2012-13 Arvind Lifestyle Brands D.C.I.T, Ltd., Circle-1(1)(2), Arvind Mills Premises, Ahmedabad. Naroda Road, Ahmedabad-380025. Pan No. Aaach7252A 2. 2056/Ahd/2016 2012-13 D.C.I.T, Arvind Lifestyle Circle-1(1)(2), Brands Ltd., Ahmedabad. 3. 2377/Ahd/2017 2013-14 Arvind Lifestyle Brands D.C.I.T, Ltd., Circle-1(1)(2), Ahmedabad. 4. 2618/Ahd/2017 2014-15 Arvind Lifestyle Brands Ito Ward-1(1)(3) Ltd., Ahmedabad

10. RCM Others 9513556 ITA nos.1817/Ahd/2017 and 3 others Asstt. Years 2012-13 8 11 Prof & Consultancy 2840169 TOTAL 34094223 14.1 It was contended by the assessee that it is following mercantile system of accounting as prescribed under section 145 of the Act which requires to account for the expenses in the year to which it pertains. As such

ASSTT. COMMISSIONER OF INCOME TAX,, CENTRAL CIRCLE - 1(4), AHMEDABAD vs. MAHALAXMI INFRACONTRACT PVT. LTD., AHMEDABAD

Bench: Shri Ramit Kochar & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 484, 485 & 486/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2015-16, 2017-18 & 2018-19) बनाम/ Assistant Commissioner Mahalaxmi Infracontract Of Income Tax Private Limited Vs. Central Circle-1(4), B-21, Corporate House, Ahmedabad Opp-Pakwan-Ii, S. G. Highway, Bodakdev, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm4615E (Appellant) .. (Respondent) Assessee By : Shri S. N. Divatia & Shri B. K. Patel, A.Rs. Shri Sudhendu Das, Cit. Dr Revenue By : सुनवाई क" तार"ख / Date Of 22/01/2024 & Hearing घोषणा क" तार"ख /Date Of 31/05/2024 Pronouncement

section 37(1)-Held, yes [Para 20] (in favour of assessee) 9.4 I find from the above decisions that interest on Service Tax, VAT interest, GST Interest & Entry tax Interest paid by the appellant cannot be said to be penal in nature. These interest payments are compensatory in nature and cannot be disallowed. Further, it is also important to mention

ASSTT. COMMISSIONER OF INCOME TAX, AHMEDABAD vs. MAHALAXMI INFRACONTRACT PRIVATE LIMITED, AHMEDABAD

Bench: Shri Ramit Kochar & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 484, 485 & 486/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2015-16, 2017-18 & 2018-19) बनाम/ Assistant Commissioner Mahalaxmi Infracontract Of Income Tax Private Limited Vs. Central Circle-1(4), B-21, Corporate House, Ahmedabad Opp-Pakwan-Ii, S. G. Highway, Bodakdev, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm4615E (Appellant) .. (Respondent) Assessee By : Shri S. N. Divatia & Shri B. K. Patel, A.Rs. Shri Sudhendu Das, Cit. Dr Revenue By : सुनवाई क" तार"ख / Date Of 22/01/2024 & Hearing घोषणा क" तार"ख /Date Of 31/05/2024 Pronouncement

section 37(1)-Held, yes [Para 20] (in favour of assessee) 9.4 I find from the above decisions that interest on Service Tax, VAT interest, GST Interest & Entry tax Interest paid by the appellant cannot be said to be penal in nature. These interest payments are compensatory in nature and cannot be disallowed. Further, it is also important to mention

ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(4), AHMEDABAD vs. MAHALAXMI INFRACONTRACT PRIVATE LIMITED, AHMEDABAD

Bench: Shri Ramit Kochar & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 484, 485 & 486/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2015-16, 2017-18 & 2018-19) बनाम/ Assistant Commissioner Mahalaxmi Infracontract Of Income Tax Private Limited Vs. Central Circle-1(4), B-21, Corporate House, Ahmedabad Opp-Pakwan-Ii, S. G. Highway, Bodakdev, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm4615E (Appellant) .. (Respondent) Assessee By : Shri S. N. Divatia & Shri B. K. Patel, A.Rs. Shri Sudhendu Das, Cit. Dr Revenue By : सुनवाई क" तार"ख / Date Of 22/01/2024 & Hearing घोषणा क" तार"ख /Date Of 31/05/2024 Pronouncement

section 37(1)-Held, yes [Para 20] (in favour of assessee) 9.4 I find from the above decisions that interest on Service Tax, VAT interest, GST Interest & Entry tax Interest paid by the appellant cannot be said to be penal in nature. These interest payments are compensatory in nature and cannot be disallowed. Further, it is also important to mention

THE DCIT (INT.TAXA.), VADODARA vs. SHRI AJOY KANAIYALAL KHANDHERIA, VADODARA

In the result, the appeal of the assessee is treated as partly allowed for statistical purposes

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.451/Ahd/2024 िनधा"रण वष" /Assessment Year : 2012-13 Ranjitsinh Narsinh Vaghela The Income Tax Officer बनाम/ 3337, Nr. Palaiya Mahakali Ward-3 V/S. Mandir Gandhinagar Pethapur, Gandhinagar Gandhinagar – 382 610 "थायी लेखा सं./Pan: Afepv 3269 D (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri Hardik Vora, Advocate Revenue By : Shri R.N. Dsouza, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 10/01/2025 घोषणा की तारीख /Date Of Pronouncement: 15/01/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: This Appeal Has Been Preferred By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As “Cit(A)”], Dated 19/01/2024, For The Assessment Year (Ay) 2012-13, Which Upheld The Order Of The Assessing Officer [Hereinafter Referred To As “Ao”] Dated 30/12/2019, Passed Under Section 144 R.W.S. 147 Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"]. Ranjitsinh Narsinh Vaghela Vs. Ito Asst. Year : 2012-13

TDS should be deducted on interest paid on compensation as it forms a part of the compensation. 2.6. The assessee argued that the Fixed Deposits (FDs) in question were maintained in the name of the Hon'ble Civil Court and not directly by the assessee. The interest accrued was not a personal earning but was received by the assessee

ASIAN MILLS PVT.LTD.,,AHMEDABAD vs. THE ADDL.CIT, RANGE-1,,, AHMEDABAD

In the result, the appeal of the assessee is allowed

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 1397/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012 Asian Mills Pvt. Ltd., A.C.I.T., 104, Sakar Iii, Vs. Range-1, Opp. Old High Court, Ahmedabad. Ashram Road, Ahmedabad-380014. Pan: Aabca8236G & आयकर अपील सं./Ita No. 1531/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012 D.C.I.T., Asian Mills Pvt. Ltd., Circle-1(1)(1), Vs. 104, Sakar Iii, Ahmedabad. Opp. Old High Court, Ashram Road, Ahmedabad-380014. Pan: Aabca8236G

26,55,548 + 1,38,350) to the total income of the assessee under section 40(a)(ia) of the Act. 5. Aggrieved assessee carried the matter before the learned CIT (A) who deleted the addition to the extent of transportation and freight inward charges but confirmed the addition of Rs. 1,38,350/- paid for clearing forwarding charges