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2023 (5) TMI 1244
Exemption u/s 80P(2)(d) - income by way of interest from investment made with cooperative banks shall not be entitled to deduction - HELD THAT:- We hold that the assessee is eligible for 80P(2)(d) deduction in respect of interest earned from co-operative banks based on the view taken in M/s. Bhavasar Kshtriya Co-operative Credit Society Ltd. [ 2022 (10) TMI 850 - ITAT BANGALORE ] It is directed that interest earned by the assessee under the head Income from other sources by granting benefit available to the assessee u/s. 57 - We direct the AO to follow the directions therein and to compute the deduction in the hands of the assessee in accordance with law. Appeal filed by assessee stands allowed.
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2023 (5) TMI 1243
Benefit of section 80P - Claim denied on the ground of belated filing of Return of Income - as argued delay in filing of return of income was occasioned due to reasons beyond the control of the assessee - HELD THAT:- Assessee cannot be denied the deduction u/s. 80P on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act under proceedings made u/s. 143(1) of the Act for the Assessment Year 2019-20. Thus the intimation u/s 143(1) is invalid in law and thereby quashed. See LUNIDHAR SEVA SAHKARI MANDALI LTD., LUNIDHAR VERSUS THE ASSESSING OFFICER (CPC) , BENGALURU [ 2023 (2) TMI 1012 - ITAT RAJKOT] - Appeal of the assessee is allowed.
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2023 (5) TMI 1242
Disallowances of losses on account of forfeiture of security deposit and inventory write off - counsel contended that the loss has been incurred by the assessee in the ordinary course of business arising from business commitment for which agreement was also executed - DR submitted that the directors of both the companies are from the same family - HELD THAT:- CIT(A) has given cogent reasons for non acceptance of the claim of the assessee. AO had earlier given detailed reason which goes to show that the claim remains unsubstantiated. The onus in the instant case is very heavy on the assessee which the assessee has failed to discharge. The basis of calculation of security deposit, the proof of production of specialized glass, cost involved thereon is not available on record. The agreement with the AE is also not available in origin....... + More
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2023 (5) TMI 1239
Ex parte order passed by the Tribunal - assessee has demonstrated cause on medical grounds for not appearing before the Bench on 02.08.2022 - HELD THAT:- An ex parte order passed by the Tribunal is to be recalled and heard afresh in case, an assessee is able to adduce sufficient and reasonable cause for non-attending and non-prosecution of its appeal. In this case, the assessee already proved the medical emergency and late filing of the adjournment letter. In our considered opinion, the above order is to be recalled and fresh hearing is to be accorded as per Rule 24 of the Income Tax Appellate Tribunal Rules. Thus the ex parte order dated 21.10.2022 is hereby recalled and the case is to be fixed for hearing on 20.06.2023, notice be served on the both sides and the appeal is to be argued on merits without seeking further adjournment.
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2023 (5) TMI 1238
Deduction u/s 80P - assessee is a Credit Cooperative Society providing credit facilities to its members - Deduction denied on the ground that the assessee is neither a Primary Agricultural Credit Society nor a Primary Cooperative Agricultural Rural Development Bank but is a Cooperative Bank - HELD THAT:- As decided in own case [ 2016 (1) TMI 1455 - ITAT MUMBAI] Assessee cannot be termed as Banks/Cooperative Banks and that being a credit society, they are entitled to exemption under Section 80(P)(2) of the Income Tax Act. Such finding of fact is not required to be interfered with by this Court in exercise of powers under Article 136 of the Constitution of India. Even otherwise, on merits also and taking into consideration the CBDT Circulars and even the definition of Bank under the Banking Regulation Act, the respondent/Assessee ca....... + More
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2023 (5) TMI 1237
Excess claim of Depreciation - appellant had claimed depreciation on assets under Finance Lease - Scope of AS-19 issued by the ICAI - determination of ownership of asset - CIT-A deleted the addition - HELD THAT:- We find that the Ld. CIT(A) has duly taken the note that after issuance of AS-19 issued by the ICAI, the CBDT vide Circular No. 2/2001 dated 9 February 2011 has clarified that capitalization of assets acquired under the finance lease by the lessees in their books of account will not have any bearing on the allowance of depreciation on those assets u/s 32 of the Income Tax Act and also states that the ownership of the asset is determined by the terms of contract between the lessor and the lessee. As per the above circular the owner is entitled to depreciation, whether he is lessee or lessor, depending upon the terms of the....... + More
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2023 (5) TMI 1236
TP Adjustment - Comparable selection - inclusion of Jeevan Scientific Technologies Ltd. in the list of comparable for determining the ALP of international transactions - HELD THAT:- As seen from the financial of M/s. Jeevan Scientific Technologies Ltd. for the assessment year 2011-12, the total income from BPO operations was only Rs.79.21 lakhs., thus this company M/s. Jeevan Scientific Technologies Ltd. cannot be included as comparable to determine the ALP of international transactions. Accordingly, we direct the AO/TPO to exclude M/s. Jeevan Scientific Technologies Ltd. from the list of comparables and directed accordingly. M/s. Universal Print Systems Ltd. - Contention of ld. A.R. is that the total RPT transactions in this case is more than 25%, as such this company cannot be included as a comparable - We direct the AO/TPO to pas....... + More
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2023 (5) TMI 1223
Penalty imposed u/s. 271(1)(c) - delay in compliance with Regulation 8(3) of SAST Regulations, 1997 - amount paid to SEBI - HELD THAT:- In any case of the matter, whether the payment made to SEBI for violation of certain SEBI Regulations is on account of any offense or is prohibited by law, as per the language of Explanation 1 to section 37 of the Act, in our view, is a highly debatable issue as there are judicial precedents holding that penalty paid for delay in various obligations to SEBI/Stock Exchange/RBI does not amount to infringement/infraction of any law. Therefore, merely because assessee accepted the disallowance, it will not lead to the conclusion that the assessee has furnished inaccurate particulars of income. Penalty imposed u/s. 271(1)(c) in the facts of the present appeal is unsustainable. Accordingly, we delete the penalty imposed. Appeal of assessee allowed.
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2023 (5) TMI 1222
Reopening of assessment u/s 147 - accommodation entry receipts - reason to believe - HELD THAT:- It is pertinent to mention that even at the time of initiating the reassessment proceedings the AO himself was not sure about the mode of accommodation entry/allege transactions therefore reason to believe had no legs to stand. Therefore ground of assessee deserve to be allowed. Valid approval u/s. 151 - HELD THAT:- As relying on M/S N.C. CABLES LTD. [ 2017 (1) TMI 1036 - DELHI HIGH COURT] in the present case also the exercise of approving powers u/s. 151 of the Act appears to have been only ritualistic and formal rather than based on application of mind to the material placed by the AO before the approving authority which could lead to a valid and meaning full approval. Therefore notice u/s. 148 of the Act without obtaining valid app....... + More
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2023 (5) TMI 1221
Addition on account of services rendered by the assessee to its AE in India - fees for the services rendered by the assessee from outside India to BTPL - whether FTS under the provisions of Article 13(4)(c) of the India-UK DTAA? - Satisfaction of make available clause - HELD THAT:- It is an undisputed fact that the assessee is a tax resident of UK and therefore has opted to be governed by the provisions of India-UK DTAA being more beneficial to it under the provisions of section 90 of the Act. Services provided by the assessee includes administrative services, accounting services, legal services and other support services that are ancillary to the functioning of corporate management function of BTPL. These services are thus essentially in the nature of managerial services which are in our considered view outside the scope of the....... + More
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2023 (5) TMI 1220
Deduction u/s 80IC - income earned from sale of scrap - According to the AO, the words derived from pertains to sale of the goods manufactured in the eligible unit and scrap sales are not byproduct of the assessee - HELD THAT:- We observe that the same issue had come up before the Pune Tribunal for A.Y. 2016-17 [ 2021 (12) TMI 821 - ITAT PUNE ] and there also, by placing reliance on the earlier decision of Pune Tribunal in assessee s own case in [ 2017 (12) TMI 1826 - ITAT PUNE ], Tribunal had provided the relief to the assessee. The ld.DR also, on principle, conceded that the issue is covered in favour of the assessee. Unable to demonstrate any contradicting facts with those already on record nor could furnish any judgment of higher forum favouring the Revenue on this issue. As per principle of consistency, on the same parity of ....... + More
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2023 (5) TMI 1219
Penalty u/s 271(1)(c) - debatable issue arises - partial income not offered to tax - assessee earned revenues from two streams i.e. web hosting and domain registration charges and offered revenue from web hosting services only to tax in the return filed - assessee did not offer to tax its income from domain registration services for the reason that it was under a bonafide belief that this income is not chargeable to tax under the provisions of the Act - HELD THAT:- As said income has been held to be taxable as royalty by the appellate authorities including the Tribunal in the quantum appeal of the assessee before the Hon ble Delhi High Court, the Hon ble Court has framed a substantial question of law - We are, therefore, of the view that the issue involved in the present appeals is a debatable issue and the position in law is not yet....... + More
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2023 (5) TMI 1218
Revision u/s 263 - Deduction u/s 80P - interest income derived from parking of surplus funds in fixed deposits - HELD THAT:-This tribunal s recent order in Solapur Zilha Prathamik Shikshah Sahakari Sanstha Niyamit [ 2023 (1) TMI 1254 - ITAT PUNE] observed that the interest income earned by a co-operative society on its investments held with a cooperative bank would be eligible for claim of deduction u/s.80P(2)(d) of the Act. AO while framing the assessment had taken a possible view, and allowed the assessee s claim for deduction under Sec. 80P(2)(d) on the interest income earned on its investments/deposits with co-operative banks, therefore, the Pr. CIT was in error in exercising his revisional jurisdiction u/s 263 of the Act for dislodging the same - No justification on the part of the Pr. CIT, who in exercise of his powers u/s 26....... + More
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2023 (5) TMI 1217
Exemption u/s 11 denied - exemption in the previous years had been allowed by the ITAT and approved by P H High Court - whether CIT(A) ought to have allowed this exemption as a judicial discipline - whether the activities of the Assessee-Trust are charitable in nature, entitling the Assessee to exemption u/s 11? - Tribunal held that the activity of the appellant was in the nature of trade, commerce or business and hence it cannot be regarded as activity for charitable purpose in view of the proviso to section 2(15) of the Income-tax Act, 1961? HELD THAT:- As w.e.f. 1.4.2004, a new section, i.e., section 10 (46A) is slated to be incorporated in the Income Tax Act, so as to exempt any income arising to a body or authority, or Board or Trust or Commission, not being a company, which has been established or constituted by or under a Cen....... + More
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2023 (5) TMI 1216
Determination of commission income of the proven accommodation entry operator - CIT (A) s reducing the commission income to 1.04% against the AO s determination @ 2% - HELD THAT:- identical issue was considered by the coordinate Bench of the Tribunal in the case of the brother of the assessee, Anand Kumar Jain [ 2023 (1) TMI 1254 - ITAT PUNE] the rate of commission in the present cases is determined at 0.47%. AO is accordingly directed to follow the direction in the aforesaid ITAT order. Protective addition - HELD THAT:- We note that the Ld. CIT(A) has held that the impugned amount can at best be treated as obtained out of assessee s undisclosed commission income which has already been brought to tax. We note that on identical issue, the Tribuna l[ 2023 (5) TMI 1186 - ITAT DELHI] in the case of Sh. Anand Kumar Jain, observed tha....... + More
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2023 (5) TMI 1215
Penalty u/s 271B - AO was not satisfied with the claim of exemption for the purpose of Section 10(23C)(iiiab) r.w.r. 2BBB - AO observed that the assessee university has not audited its account as per Clause (b) of sub-section (1) of section 12A despite the fact that its total income as computed under the Act without giving effect to the provisions of Section 12 exceeds the maximum amount which is not chargeable to Income Tax in F.Y. 2017-18 - whether violation of main part of the Section 44AB confirmed? HELD THAT:- Proviso of Section 44AB is not a default or charging provision rather is a beneficial provision for the any assessee whose accounts are audited under any other law other than the Act and such audited accounts if furnished with return will be considered as compliance of Section 44AB - AO has considered it to be a default....... + More
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2023 (5) TMI 1214
Reopening of assessment - validity of notice u/s 148 - Information received by the AO under Project Falcon from DGIT(Investigation), Mumbai about trading on the United Stock Exchange of India by engaging in reversal trades in illiquid stock options resulting in non-genuine business loss/gains to the beneficiary assessee and that the present assessee is a party to such manipulation - HELD THAT:- Reasons derived by the AO on the alleged ground of income escaping assessment which consists of claim of artificial loss from trade reversal on Stock Exchange and the belief that the assessee has incurred an amount as commission paid for obtaining a loss of is beyond logic and not borne out of any record. Hence, the order passed by the Assessing Officer u/s 147 dated Nil is to be treated non est in the eyes of law. Appeal of the assessee is allowed.
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2023 (5) TMI 1213
Addition toward estimated gross profit by rejecting books of accounts - Unexplained cash credits - HELD THAT:- Where AO rejected books of account u/s 145(3) and made estimated addition on turnover, then such books of accounts should not be relied to make addition on account of sundry creditors/ trade creditors. Thus, respectfully following the judgment of BAHUBALI NEMINATH MUTTIN [ 2017 (1) TMI 1375 - KARNATAKA HIGH COURT] the addition made by the Assessing Officer, in case of assessee under consideration, on account of creditor/ temporary loan taken for trading purpose should be deleted. Addition u/s 68 - creditors/person who gave the temporary loan, did not turn up before him, as discussed in the assessment order - We note that assessee has produced sufficient documents and evidences before the assessing officer and the so....... + More
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2023 (5) TMI 1212
Assessee in default u/s 201(1) - non-deduction of TDS on provision for expenses made at the end of the year u/s 194C, 194I and 194J - AO observed that the provision had been made on ad hoc basis in respect of various expenditures by the assessee - HELD THAT:- It is a fact on record that such provisions were made in view of accrual method of accounting followed by the assessee and the same were reversed in the books of account on the first day of the immediately succeeding year. Not in dispute that as and when the invoices are received by the assessee in the succeeding year with date of invoice falling in the succeeding year, the same are processed for payment wherein due deduction of tax at source have been made and remitted to the account of the Central Government within the prescribed time. This is a consistent practice followed by t....... + More
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2023 (5) TMI 1211
Penalty u/s 271B - failure to get his books of account audited by a qualified Chartered Accountant, thereby violating the provisions of section 44AB - as explained that the assessee is engaged in the business of supply of milk (Amul) on behalf of Gujarat Co.op Milk Marketing Federation Ltd. known as Amul Milk in the assigned area - HELD THAT:- During assessment proceedings as also before the Ld. CIT(A) in penalty proceedings the assessee explained, inter alia that it was his first year of business and that he was under the bonafide belief that the provisions of section 44AB as inapplicable to him as he was only a commission agent supplying milk on behalf of Amul Milk in the assigned area and was entitled to fixed commission only. In our opinion, the explanation offered by the assessee constitutes reasonable cause and the assessee....... + More
