- 2021 (10) TMI 879 - MADRAS HIGH COURT
Validity of reopening of assessment u/s 147 - Whether case falls within the parameters of Section 153A to Section 153C? - materials relied upon were obtained during a search under Section 132 of the Act of another party at New Delhi - As contended that where the material relied upon was obtained in the course of search of another party, the proceedings of the appellant can be initiated only under Section 153C - HELD THAT:- The Court had proceeded to consider the effect of Section 153C and has observed that nowhere in Section 147, the provisions of Section 153C stands excluded. However, we find that the contentions which were raised by the appellant with regard to the validity of the reopening proceedings which were sought to be controverted by the respondent have not been decided which in our opinion was the case to be decided by the Writ....... + More
- 2021 (10) TMI 878 - ITAT BANGALORE
Exemption u/s 11 - cancelling the registration granted to it u/s 12A - order cancelling the registration granted to the assessee u/s 12A has been passed by the Ld Principal CIT on the basis of findings noticed by the search officials and also by the AO during the course of assessment proceedings - HELD THAT:- The fact remain that the Tribunal has now passed orders for AY 2010-11 to 2016-17 against the assessment orders passed for the above said years u/s 153A of the Act. There is no dispute that the Ld PCIT has also referred to the assessment orders passed u/s 153A of the Act. Now there is change in circumstances on account of passing of the orders by the Tribunal. Under these set of facts, we are of the view that the entire issues urged by the assessee before us require re-examination at the end of Ld. Principal CIT, who can take judicia....... + More
- 2021 (10) TMI 877 - ITAT PUNE
TP Adjustment - selection of MAM - assessee applied the CUP as the most appropriate method, which got repelled at the hands of the authorities below - HELD THAT:- The assessee purchasing similar products from non-AEs or a third party in India purchasing similar goods in an uncontrolled situation would have constituted the next best comparable uncontrolled price(s). Neither the best nor the next best comparable uncontrolled transactions are available and further, the assessee has provided no basis to crease out the effect of geographical differences in the transaction so chosen as comparable in terms of rule 10B(3). In such circumstances, we fail to comprehend as to how the sale transactions made by German AE to non-German AEs constitute valid comparable uncontrolled transactions insofar as the assessee’s purchases of raw material fr....... + More
- 2021 (10) TMI 876 - ITAT DELHI
Addition of unexplained cash credit u/s. 68 - assessee had failed to discharge its onus of establishing the genuineness and creditworthiness of source of funds received - non-production of Directors/Principal officers of the Share applicant companies - HELD THAT:- It is pertinent to note that in Assessment Order, the Assessing Officer has categorically stated that the Directors or persons related to share applicant were never produced before the AO despite giving notice under Section 133(6) of the Act. But the CIT(A) in para 3.2 (k) mentioned the correct names and addresses which was not given to the AO by the Assessee at the initial stages of the assessment proceedings but at the end period of the Assessment proceedings. The parties with correct address were never inspected by the AO - CIT(A) without verifying the actual existence of the....... + More
- 2021 (10) TMI 875 - ITAT DELHI
Disallowance of expenditure incurred on account of provisions for advertisement expenses u/s. 40A(IA) - whether CIT(A) erred in allowing relief on expenditure which has neither been ascertain or crystallized during the year and nor was the TDS deducted during the year? - HELD THAT:- CIT(A) has given a clear cut finding wherein it is categorically mentioned that the Assessing Officer never disputed the fact of deposit of tax deducted at source before the due date of filing the Income Tax Return for the subject year. CIT(A) rightly held that once the AO was directed to verify the amount on which tax has been paid before the due date of filing the return of income and allow the same in the first round of appeal before the Tribunal. AO was not right in disallowing the deduction under Section 40(a)(ia) of the Act for failure to deduct and depo....... + More
- 2021 (10) TMI 874 - ITAT DELHI
Penalty u/s 271(1)(c) - Defective notice u/s 274 - as argued no particular limb mentioned in the notice issued under Section 271(1)(c) r.w.s. 274 - notice is not mentioning the concealment or the furnishing of inaccurate particulars - HELD THAT:- Since in the instant case also the inappropriate words in the penalty notice has not been struck off and the notice does not specify as to under which limb of the provisions, the penalty u/s. 271(1)(c) has been initiated, therefore, we are of the considered opinion that the penalty levied u/s. 271(1)(c) is not sustainable and has to be deleted. Although the Ld. DR submitted that mere non-striking off of the inappropriate words will not invalidate the penalty proceedings, however, the decision of the Hon'ble Karnataka High Court in the case of SSA'S Emerald Meadows [2015 (11) TMI 1620 - KA....... + More
- 2021 (10) TMI 873 - ITAT RAIPUR
Revision u/s 263 by CIT - scope of enquiry as assigned under 'limited scrutiny' - assessment so framed under section 143(3) should be modified/set aside on the ground that such order is erroneous in so far as prejudicial to the interest of the revenue - Discrepancy in turnover shown,Some of the expenses have considerably increased as compared to last year and unexplained unsecured loan - HELD THAT:- It is the PCIT who has acted in haste and without due application of mind to such glaring facts. Significantly, the assessment was made under 'limited scrutiny' on specific points. The issue aforesaid raised by the PCIT does not form part of the issues raised in the notice under section 142(1) dated 24.07.2017. A.O. was having no mandate to expand the scope of enquiry beyond the points for which case was put under limited scrut....... + More
- 2021 (10) TMI 872 - ITAT RAIPUR
Revision u/s 263 by CIT - action u/s. 132A of the act was initiated and concluded - cash seized by the SST-FS team of District Administration - case was selected under scrutiny by issuance of notice u/s 143(2) - SCN issued to assessee seeking to tax the surrender of ₹ 20 Lakhs @ provided under s. 115BBE - requisition has been made u/s 132A of the Act, the jurisdiction to complete the assessment is governed by the provisions of Section 153A - assessee contends that the assessment made u/s 143(3) of the Act in pursuance of requisition u/s 132A of the Act is grossly opposed to the very scheme of the Act and such assessment is wholly unsustainable in law and thusan ab initio void order cannot be subject to revision under s. 263 HELD THAT:- The normal provisions of assessment under s. 143(3) of the Act would not apply in the case where a....... + More
- 2021 (10) TMI 871 - ITAT BANGALORE
Addition u/s. 68 - cash deposits in saving bank account in the name of the assessee - HELD THAT:- One opportunity should be granted to the assessee to prove the source of cash deposits. For this purpose, the issue on merits is restored to the files of the A.O. The assessee is directed to cooperate with the Assessing Officer. The assessee shall place necessary documentary evidences to prove the source of cash deposits - A.O. is directed to afford a reasonable opportunity of hearing to the assessee.
- 2021 (10) TMI 870 - ITAT BANGALORE
Delayed contribution of employees' contribution of PF and ESI - amendment brought about to section 36(1)(va) and 43B - assessee has remitted the employees' contribution to PF and ESI before the due date for filing of return u/s. 139(1) - HELD THAT:- In view of the judgment of the Hon'ble jurisdictional High Court in the case of Essae Teraoka (P.) Ltd. [2014 (3) TMI 386 - KARNATAKA HIGH COURT] the assessee would have been entitled to deduction of employees' contribution of PF and ESI if the payment was made prior to due date of filing of the return of income u/s.139(1) of the I.T. Act. Therefore, the amendment brought about by the Finance Act, 2021 to section 36(1)(va) and 43B of the I.T. Act, alters the position of law adversely to the assessee. Therefore, such amendment cannot be held to be retrospective in nature. Even o....... + More
- 2021 (10) TMI 869 - ITAT MUMBAI
Disallowance u/s 14A r.w. Rule 8D - As argued by assessee that its own funds is more than the investments, therefore, there should not be interest disallowance in accordance with law - HELD THAT:- All these figures speaks that the own funds of the assessee is more than the investment. No interest disallowance is required in the interest of justice. Moreover, we found that the AO considered investment in Gold and Silver Coins while calculating expenditure to earn the exempt income but those investment which yielded the exempt income is liable to be considered while calculating the expenditure to earn the exempt income in view of the provisions u/s 14A r.w. Rule 8D(iii). In this regard, we also placed reliance upon the decision of ACIT Vs. Vireet Investments P. Ltd. [2017 (6) TMI 1124 - ITAT DELHI]. Accordingly, we decide this issue in favo....... + More
- 2021 (10) TMI 868 - ITAT MUMBAI
Reopening of assessment u/s 147 - Non disposing of objections put by assessee against reopening - HELD THAT:- Since Assessing Officer failed to dispose off the preliminary objections of the assessee by way of a separate order, respectfully following the decision of the Hon'ble Bombay High Court in the case of Fomento Resorts & Hotels Ltd. [2006 (11) TMI 645 - BOMBAY HIGH COURT] we quash the re-assessment order passed u/s. 143(3) r.w.s. 147 of the Act for the A.Y. 2011-12. The preliminary ground raised by the assessee is allowed.
- 2021 (10) TMI 867 - ITAT MUMBAI
Claim of deduction u/s 80P(2)(d) - interest income received from Co-operative Bank - assessee has not made claim of deduction u/s 80P in the return of income - HELD THAT:- Where claim of deduction under section 10A/10AA/10B/10BA or any provisions of Chapter VIC is not made in the return of income, the deduction shall not be allowed to the assessee. In the present case the assessee has claimed deduction under section 80P(2)(d) of the Act in respect of interest income from Co-operative Bank by way of note during assessment proceedings. Section 80P falls under Chapter VI-C, therefore, the provisions of section 80A(5) precludes the assessee to make claim of deduction under section 80P from any other mode other than the return of income. It would be relevant to mention here that this appeal was refixed for hearing especially to give an opportu....... + More
- 2021 (10) TMI 866 - ITAT SURAT
Reopening of assessment u/s 147 - assessee has claimed deduction under section 80IB without allowing interest on capital and remuneration to the partners - disallowing the partner’s remuneration and interest on capital which is in contravention to the covenants laid down in the partnership deed - HELD THAT:- The partners decided not to give any remuneration. On the interest to partner’s capital, the assessee stated that it is privilege of the partners to change or amend the clause as agreed under the deed of partnership.Clause- 21 of the partnership deed provides such amendment. The assessee stated that the partnership was revised on 01.04.2008 i.e. much prior to the selection of return for scrutiny - AO disregarded the contention of the assessee and disallowed the part remuneration under section 80IB of the Act to the extent ....... + More
- 2021 (10) TMI 865 - ITAT SURAT
Addition u/s 56(2)(vii)(b) - difference between the stamp value and the purchase consideration - sale consideration on the lesser value of prevailing Jantri rates - Difference of value is the stamp valuation worked out as per the value adopted by the Stamp Valuation Authority(SVA) - HELD THAT:- CIT(A) not discarded the contention of the assessee by taking view that no separate brake up of market value of actual plot, road, common area given in the sale deed is not established and that the recorded consideration is the market value of actual plot as per Stamp Valuation Authority (SVA), thus, concurred with the finding of the AO. We find that the AO made addition without verifying the facts either from the seller about the receipt of excess sale consideration. As assessee specifically stated before the lower authorities that he has paid 1% ....... + More
- 2021 (10) TMI 864 - ITAT MUMBAI
Penalty u/s 271(1)(c) - A.O. has estimated income/gross profit @ 8% on bogus purchases - HELD THAT:- As when the addition is on estimated basis, penalty u/s 271(1)(c) of the Act cannot be levied on such adhoc estimated income. The disallowance of purchases on ad-hoc basis does not tantamount to furnishing inaccurate particulars of income under the provisions of Section 271(1) (c) of the Act. The A.O. has not doubted the sales and made 8% disallowance of bogus purchases and we rely on the ratio of the Honorable Jurisdictional High Court in the case of M/s Nikunj Eximp Enterprises [2014 (7) TMI 559 - BOMBAY HIGH COURT]. Assessing officer made an addition based on the information received from Sales tax department Maharashtra. We are of the opinion that once the revenue accepts that penalty is levied on the basis of information from the outside agency/ department, the penalty is not sustained - Decided against revenue.
- 2021 (10) TMI 863 - ITAT AHMEDABAD
Revision u/s 263 - As per CIT assessment framed under section 143(3) of the Act as erroneous insofar prejudicial to the interest of revenue - transaction for the purchase of the property was not completed within the period prescribed under section 54 and AO without verifying all these details allowed the exemption to the assessee u//s 54 - HELD THAT:- As the assessee cannot be denied the benefit of deduction provided under section 54 of the Act in the given facts and circumstances merely on the reasoning that the property was not registered as well as the possession was not handed over to the assessee. Assessee has filed a special civil suit in the civil court of Ahmedabad. Assessee has sent many reminders to the vendor of the property which are placed on pages 51 to 56 of the paper book for the registration of the property. Thus it is tr....... + More
- 2021 (10) TMI 862 - ITAT BANGALORE
Disallowance u/s. 14A of the Act r.w. Rule 8D - contention of the ld. AR is that the assessee has investment in mutual funds and tax free bonds of out of its own funds out of share capital, free reserve and it exceeds the average value of investments during the AY 2013-14. No direct expenditure to earn exempt income, therefore section 14A r.w. Rule 8D - HELD THAT:- As these facts have not been examined by the CIT(Appeals) while deleting the addition holding that there is no exempt income, which is not correct. Accordingly, we set aside his order and restore this issue back to the Assessing Officer for examination and fresh decision in accordance with law after providing opportunity of hearing to the assessee. Disallowance of depreciation claimed on investments - assessee submitted that depreciation on investments in Govt. securities chara....... + More
- 2021 (10) TMI 861 - ITAT SURAT
Revision u/s 263 - claim of deduction under section 80P(2)(d) - HELD THAT:- Co-ordinate Bench of Rajkot Tribunal in Surendarnagar District Cooperative Milk Producer Union Ltd. [2019 (9) TMI 978 - ITAT RAJKOT] held the assessee co-operative society could not claim benefit under section 80P(2)(d) in respect of interest earned by it from deposits made with nationalized/private banks, however, the said benefit was available in respect of interest earned and on deposits made with co-operative bank. Thus, in view of the aforesaid legal discussion we are of the considered view that order passed by Assessing Officer is not erroneous, though it may be prejudicial to the interest of the Revenue. Therefore, the twin conditions that orders is erroneous and so far as prejudicial to the interest of revenue, as prescribed under section 263 is not fulfil....... + More
- 2021 (10) TMI 860 - ITAT SURAT
Exemption u/s 54 - denial of deduction as assessee has not furnished any documentary evidence to substantiate the claim that any amount was invested for purchase of new residential property - on one hand assessee submitted that she had purchased the land utilising the entire consideration received on the sale of property and on the other hand, she submitted that once the amount was realised from the firm, she will invest in purchase of new residential house immediately - HELD THAT:- Perusal of record reveals that initially counsel of the assessee appeared on a number of occasion and sought adjournment. After some time the counsel rescued herself from the case and informed the Bench that the assessee intends to engaged other counsel. However, none appeared on behalf of the assessee. This appeal is pending since 2016 and is in the category ....... + More
