- 2019 (9) TMI 1476 - ITAT COCHIN
Penalty proceedings u/s 272A(2)(c) r.w.s. 274 - assessee non - furnishing the information called for u/s 133(6) - HELD THAT:- On identical facts the Cochin Bench of the Tribunal in the cases of Kakoor Service Co-operative Bank Ltd. [2018 (1) TMI 548 - ITAT COCHIN] had held that the penalty imposed u/s 272A(2)(c) of the Act is valid. Assessee has not offered any valid reason for not furnishing the information called for u/s 133(6) of the Act. AO has mentioned that when they had approached, the assessee Society, for seeking information u/s 133(6) of the Act, there was total lack of co-operation on the part of the assessee society as well as threat (reference order imposing penalty u/s 272A(2)(c) in appeals. Since there is no reasonable cause furnished by the assessee as mentioned u/s 273B of the IT Act for non furnishing of information sought by the ITO(intelligence) u/s 133(6) of the Act, the order imposing penalty cannot be quashed. - Decided in favour of revenue.
- 2019 (9) TMI 1475 - ITAT PUNE
Excess Cane Price Paid to Sugarcane Suppliers - HELD THAT:- In view of the statement made by both the sides that the facts in the present appeal are identical, the issue relating to excess sugarcane price paid by the assessee is restored to the file of Assessing Officer with similar directions as above in the case of Majalgaon Sahakari Sakhar Karkhana Ltd. [2019 (3) TMI 906 - ITAT PUNE] - AO shall decide the issue after affording reasonable opportunity of being heard to the assessee in accordance with law. Thus, the relevant grounds raised by the assessee on this issue are allowed for statistical purposes. Sale of Sugar at Concessional rates - HELD THAT:- As relying on Majalgaon Sahakari Sakhar Karkhana Ltd. [2019 (3) TMI 906 - ITAT PUNE] in view of the above order by Co-ordinate Bench this issue is restored back to the file of Assessing ....... + More
- 2019 (9) TMI 1473 - ITAT CHENNAI
Bogus LTCG - company in which the assessee invested is a penny stock company - HELD THAT:- This Tribunal is of the considered opinion that the matter needs to be re-examined by the Assessing Officer. Accordingly, orders of both the authorities below are set aside and the issue raised by the assessee with regard to deduction u/s 10(38) of the Act is remitted back to the file of the AO. AO shall examine the matter as directed by this Tribunal in the case of Kanhaiyalal & Sons (HUF) [2019 (2) TMI 1640 - ITAT CHENNAI] and thereafter decide the issue afresh in accordance with law, after giving a reasonable opportunity to the assessee.
- 2019 (9) TMI 1472 - ITAT MUMBAI
TP Adjustment - Comparable selection - HELD THAT:- Assessee is primarily engaged in the provision of IT and ITES sector as per disclosure made in the Annual report of the assessee company. The ld. TPO observed that as per TP study report, the assessee is an ITES company. It is providing ITES services to M/s. Zenta Global Ltd. Barbados (ZGL). ZGL is a wholly owned subsidiary of M/s. Zenta Group (LLC), USA. The assessee company is owned by outsourcing Mauritius-1 Ltd., and outsourcing Mauritius-2 Ltd., in the ratio of 51:49. M/s. Excel Infoways Ltd. is functionally not comparable with that of the assessee company. Apart from this, we find that M/s. Excel Infoways Ltd. had earned super normal profit of 243.69% on which ground also, this comparable deserves to be excluded from the list of comparables with that of the assessee company. Disallo....... + More
- 2019 (9) TMI 1465 - ITAT BANGALORE
Grant of registration u/s 80G(5)(vi) denied - genuineness of the activities for grant of approval under section 80G(5)(vi) of the Act cannot be verified - assessee was granted registration under section 12AA - HELD THAT:- The object of grant of recognition under section 80G is to promote charitable activities and to mobilize resources which can be generated by the assessee trust from the potential donors as well as public at large. Therefore, denial of recognition under section 80G merely for the fact that the activities have not been carried out by the assessee trust and thus cannot be verified is not appropriate. CIT(E) has not spelt out non-fulfillment of any of the conditions specified under section 80G(5) of the Act, therefore, it is not a case where any of the conditions specified for grant of approval have not been fulfilled by the assessee trust. - Decided in favour of assessee.
- 2019 (9) TMI 1464 - ITAT BANGALORE
Weighted deduction u/s 35(2AB) - Assessee claimed deduction on scientific research expenses incurred by it @ 200% - AO noticed that the assessee has not furnished Form No.3CL issued by DSIR, New Delhi,the prescribed authority certifying the expenses incurred on scientific research - AO restricted the claim of revenue expenditure to 100% and disallowed capital expenditure - also rejected the alternative claim of the assessee to allow depreciation on the capital expenditure - HELD THAT:- In the instant case, the year under consideration being asst. year 2014-15, the same would fall prior to 1/4/2016 and hence the tax authorities are not justified for insisting on production of Form NO.3CL for allowing deduction u/s 35(2AB) of the Act. Accordingly, we set aside the order passed by the ld CIT(A) and direct the AO to allow the deduction @ 200% of the expenditure incurred by the assessee, after examining the claim from the books of accounts. - Decided in favour of assessee.
- 2019 (9) TMI 1416 - ITAT PUNE
Ex-parte - no notice of hearing was received by assessee - Assessee prevented by sufficient cause from non-appearance as they have not received notice - due date for filing the return of income in the case under section 139(4) was 31.03.2014 as against 31.03.2013 mentioned in the order of Tribunal - HELD THAT:- The Tribunal [2019 (1) TMI 875 - ITAT PUNE] had decided the present appeals following the case of Humayun Suleman Merchant Vs. CCIT [2016 (9) TMI 70 - BOMBAY HIGH COURT]. The appeals of applicants were decided ex-parte in view of the issue being decided by the Hon’ble Bombay High Court (supra) - find merit in the plea of applicants and the order of Tribunal is recalled for regular hearing. The Registry is directed to fix the appeals in regular course and issue notice to both the parties. The Miscellaneous Applications filed by the applicants are thus, allowed.
- 2019 (9) TMI 1415 - ITAT CHENNAI
Revision u/s 263 - difference between sale consideration actually paid and the guideline value fixed by the Government - addition in respect of the provisions of section 56(2)(vii) - HELD THAT:- Difference between sale consideration actually paid and the guideline value fixed by the Government in the present case being only ₹ 24/- lakhs, the stamp duty variation would be only in the range of ₹ 2.4 lakhs. Where the assessee has already spent ₹ 1,44,00,000/- and registration cost of nearly ₹ 14.4 lakhs and additional ₹ 2.4 lakhs admittedly would not be challenged by the assessee, especially when considering the rigmarole in respect of filing the appeal for reduction of the stamp duty valuation. But that cannot be the ground for making a direct addition in respect of the provisions of section 56(2)(vii) of the A....... + More
- 2019 (9) TMI 1407 - ITAT MUMBAI
Income accrued in India - Permanent establishment of the Appellant Company under Article 5 of the DTAA between India and Mauritius - appellant-company is a non-resident company incorporated in Mauritius engaged in the business of shipping and declared income from shipping activities - assessee claimed that its place of effective management is located in Mauritius and hence as per Article -8, no income is taxable in India - HELD THAT:- Effective management can be only in between two contracting state is not correct and as per the facts narrated above, we are of the considered view that the effective management of the assessee is neither in Mauritius nor in India and we are in agreement with the views of Mr. Klaus Vogel, who is an eminent authority of International Taxation, that if the effective management of an enterprise is not in one of....... + More
- 2019 (9) TMI 1403 - ITAT PUNE
Income from House Property - Annual Letting Value of the unsold units lying as Stock in Trade - notional income by way of ALV in respect of the unsold flats cannot be taxed in the hands of the assessee - appellant is engaged in the business of real estate development and the unsold flats are held as Stock in Trade and not as Investments - HELD THAT:- It is an undisputed fact that the assessee never let out the unsold flats held as stock-in-trade. It is the case of the AO that the provisions of sections 22 to 23 of the Act should be invoked for taxing the notional income on such flats. As perused all the four grounds revolved around the provisions of sections 22 to 23 of the Act relating to the head of income i.e. income from house property. It is an undisputed fact the provisions of section 23(5) of the Act was amended by the Finance Act,....... + More
- 2019 (9) TMI 1402 - ITAT MUMBAI
Reopening of assessment u/s 147 - bogus purchases - HELD THAT:- Recorded reasons state that the assessee had availed accommodation entries on bogus bills from M/s.Nice Diamonds and M/s. Nice Diamonds is belongs to group of Shri Bhanwarlal Jain where they have admitted in the course of the search that M/s. Nice Diamonds is managed by them and they are bogus hawala dealers. AO has reason to believe that income had escaped assessment based on the above information and formed an opinion by himself and there is no borrowed satisfaction. Thus respectfully following the case of CIT v. Rajesh Jhaveri Stock Brokers (P) Ltd. [2007 (5) TMI 197 - SUPREME COURT] we uphold the reopening made by the Assessing Officer u/s. 147. Bogus purchases - estimation of profit element at 8% - CIT(A) held that only the profit element embedded in such purchases shown....... + More
- 2019 (9) TMI 1399 - ITAT COCHIN
Revision u/s 263 - Disallowance u/s 40(a)(iib) - Electricity duty u/s. 3(1) of the KSED Act - CIT held that the amount debited towards Electricity Duty u/s. 3(1) of the KSED Act being an exclusive levy on the assessee which is a State Government undertaking by the State Government is to be disallowed u/s. 40(a)(iib) - HELD THAT:- In the present case, the Assessing Officer had not made the disallowance u/s. 40(a)(iib) - Without enquiring, the AO accepted the assessee’s claim. The failure on the part of the AO to make necessary enquiry rendered the assessment order erroneous which also resulted in loss to the revenue. PCIT had observed in his order that the electricity duty u/s. 3(1) of the KSED Act falls under the purview of section 40(a)(iib) of the Act and it is to be disallowed u/s. 40(a)(iib) - order of the PCIT cannot be held as....... + More
- 2019 (9) TMI 1396 - ITAT JAIPUR
Undisclosed income on a/c of alleged unexplained cash found during the course of search - search and seizure u/s 132 and 133A - HELD THAT:- The assessee explained the source of cash as belongs to M/s. Adventure Global Tour LLP and also produced the cash book of the said concern to show the availability of cash with the said LLP. Once there is no incriminating material to show that the cash of ₹ 2,59,140/- found at 203 Ratna Sagar, MSB Ka Rasta, Johari Bazar belongs to the assessee and the said premises was not the business premises of the assessee and the assessee has explained the source of cash belongs to M/s. Adventure Global Tour LLP whose business premises is situated at 203 Ratna Sagar, MSB Ka Rasta, Johari Bazar, then in the absence of any contrary fact or material, the said explanation of the assessee cannot be brushed aside....... + More
- 2019 (9) TMI 1392 - ITAT KOLKATA
Allowability of deduction u/s 80IA(4)(i) - HELD THAT:- This issue has been adjudicated against the assessee and in favour of the Revenue by the order of this Bench of the Tribunal in WEST BENGAL HOUSING INFRASTRUCTURE DEVELOPMENT CORPORATION [2019 (6) TMI 921 - ITAT KOLKATA] wherein held no such details provided by the assessee before the AO in claiming the said project in New Town is an integral part of highway project. Therefore, in our opinion, the assessee is not entitled to claim deduction u/s 80IA. Interest on Treasury Account - Sum deposited Treasury Account of the State Government - Correspondence between the Government of West Bengal and the assessee - HELD THAT:- The correspondence, which lead to the assessee investing in the Government Treasury, the terms and conditions under which such deposits/investments were made, have to b....... + More
- 2019 (9) TMI 1389 - ITAT MUMBAI
Penalty u/s. 271G - assessee has entered into an international transactions with its AE and has failed to furnish documents or information as required u/s 92D(3) - main allegation of the revenue is that of non-furnishing of audited AE and non AE segmental as well as documents regarding choice of foreign entity as tested party - HELD THAT:- As noted that from the letter issued by revenue dated 07.09.2015 i.e. notice under section 92CA(2) read with section 92D(3) requiring information to be furnished in connection with the TP proceedings that a general notice is issued by the AO. We noted that this issue has been considered in the case of CIT vs. Leory Somer & Controls (India) (P) Ltd. [2013 (9) TMI 761 - DELHI HIGH COURT] wherein it is held that when there is a general notice and no specific information of document which is required to....... + More
- 2019 (9) TMI 1381 - ITAT MUMBAI
TP adjustment as regards the reinsurance commission received by the assessee from its AEs - TPO apportioning the total costs of “direct insurance broking segment‟ and “reinsurance segment‟ on a pro-rata basis of the respective incomes received from the said segments instead of taking actual cost - HELD THAT:- In case, the actual bifurcated details of the aforesaid segments viz. (i). reinsurance commission segment; (ii). direct insurance brokerage segment backed with supporting documentary evidence were available with the assessee and was furnished with the TPO, therein there was no justification on his part to have allocated the expenses on a pro rata basis of the respective incomes of the said segments. However, the said claim of the assessee as regards allocation of the expenses on actual basis in respect of the ....... + More
- 2019 (9) TMI 1355 - ITAT PUNE
Reopening of assessment u/s 147 - addition made by AO relates to the GP percentage based addition - HELD THAT:- As decided in JET AIRWAYS (I) LTD. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] Income in respect of which notice issued not found to be escaped income - Once the AO accepts that the income in respect of which he entertained reason to believe to have escaped assessment, was not in fact escaped income; he has no jurisdiction to reassess other items of income. Considering the above settled nature of the issue and undisputed fact that the AO did not make any addition on account of reasons recorded by him while reopening the assessment, we are of the opinion that the reassessments made by the Assessing Officer are to be quashed as null and void. - Decided in favour of assessee.
- 2019 (9) TMI 1350 - ITAT BANGALORE
Revision u/s 263 - assessee is aggrieved by the revision order passed in respect of expenditure claimed as “good will” - HELD THAT:- AO did not conduct any enquiry at all with regard to the claim of “Good Will” made by the assessee. The Ld A.R also could not demonstrate that the AO did conduct enquiry and has taken a possible view. AO has passed the order without making any enquiry on this issue and the same would render the order erroneous and in view of its tax implications, the same would cause prejudice to the interests of revenue. With regard to the contention of the assessee that the assessment order cannot be considered to be prejudicial to the interests of revenue on account of the eligibility of the assessee to claim depreciation on the Good Will amount, we are of the view that the said claim does not arise out of the assessment order and hence the same cannot be considered. - Decided against assessee.
- 2019 (9) TMI 1342 - ITAT, MUMBAI
Transfer pricing adjustment in respect of technical knowhow fees paid by the assessee to its AE - TPO determining the ALP of a particular international transaction at Nil without resorting to any methods prescribed - assessee considered Net Profit Margin (NPM) as an appropriate Profit Level Indicator (PLI ) - HELD THAT:- Duty of the Ld. TPO is restricted only to the determination of arm's length price of an international transaction between two related parties by applying any of the methods prescribed under section 92C of the Act r/w rule 10B of the Rules. Thus, there is no provision under the Act empowering the Ld. TPO to determine the arm's length price on estimation basis, that too, by entertaining doubts with regard to the business expediency of the payment and in the process stepping into the shoes of the Ld. AO for making di....... + More
- 2019 (9) TMI 1340 - ITAT MUMBAI
Adjustment of arm’s length price of interest charged on loan given to AE - HELD THAT:- As decided in favour of the assessee in the assessee’s own case for the A.Y. 2003-04 and 2004-05 [2014 (4) TMI 1097 - ITAT MUMBAI] aforesaid by the ITAT holding that the LIBOR is acceptable arm’s length interest rate, we respectfully following the decision of the coordinate Bench decide this issue in favour of the assessee and dismiss this ground of appeal of the revenue. Non charging of fees from AE for providing letter of comfort - HELD THAT:- As decided in favour of the assessee in the assessee’s own case for the A.Y. 2003-04 and 2004-05 [2014 (4) TMI 1097 - ITAT MUMBAI] held that the letter of comfort is outside the ambit of international transaction. Disallowance of sales promotion expenses - HELD THAT:- As decided in favour....... + More