- 2020 (12) TMI 1212 - ITAT AHMEDABAD
Condonation of delay - Misc. Application filed by the assessee is late by 650 days - assessee wants to settle the issue under Vivad se Vishwas Scheme - HELD THAT:- The reasons for delay in filing present MA cannot be simply brushed aside, as the same are based on the facts narrated by the assessee and supported by an affidavit which deserve reasonable and lenient consideration in view of Rule 24 of the Income Tax (Appellate Tribunal) Rule 1963. CBDT also explained vide Circular dated 4.12.2020 (supra) that MA pending as on 31st January, 2020 would also be covered under the Vivad se Vishwas scheme. In view of this, and coupled with the fact that the assessee has filed letter dated 4.12.2020 stating therein that the assessee wants to settle the issue under Vivad se Vishwas Scheme and the willingness of the assessee-company to avail the bene....... + More
- 2020 (12) TMI 1211 - ITAT AHMEDABAD
Condonation of delay in filling rectification application - application under Vivad se Vishwas Scheme - HELD THAT:- The reasons for delay in filing present two MAs cannot be simply brushed aside, as the same are based on the facts narrated by the assessee and supported by an affidavit which deserve reasonable and lenient consideration in view of Rule 24 of the Income Tax (Appellate Tribunal) Rule 1963. In view of this, and coupled with the fact that the assessee has filed letter dated 3.11.2020 stating therein that the assessee wants to settle the issue under Vivad se Vishwas Scheme and wants to file declaration for settlement of the issue under appeal by the assessee, we condone the delay in filing the MAs., and allow the assessee for exercising option to avail benefit under VSV scheme. Considering the above facts and circumstances, the MA of the assessee are allowed and Registry is directed to list these cases for hearing on 20.1.2021.
- 2020 (12) TMI 1200 - ITAT DELHI
Exemption u/s 10(23C)(iv) denied - activities of the assessee Trust as hit by the proviso to section 2(15) - according to AO assessee’s activities of providing food and beverages, accommodation against which charges are made from the members and non-members constitute commercial activities and therefore according to the AO the activities of the assessee Trust are not governed by the proviso to section 10(23C)(iv) - HELD THAT:- We have gone through the record in the light of the submissions made on either side. Record reveals that the main reasons of denying exemption u/s 10(23C)(iv) of the Income Tax Act by the learned Assessing Officer is that the activities of the assessee Trust are hit by the proviso to section 2(15) and according to the learned Assessing Officer, assessee’s activities of providing food and beverages, accom....... + More
- 2020 (12) TMI 1199 - ITAT DELHI
Reopening of assessment - addition u/s 68 - Information was received from the investigation wing regarding the assessee was beneficiary of the accommodation entry - HELD THAT:- As perused the order passed by the Revenue Authority especially assessment order and we are of the view that no doubt there is information from the investigation wing. But in this case no enquiry has been conducted by the Assessing Officer and the said information could not be said to be the tangible material. Therefore, on this ground reassessment was not justified. See RMG POLYVINYL (I) LTD. [2017 (7) TMI 371 - DELHI HIGH COURT] Case of the assessee was reopened on the basis of information received from the Investigation wing but the Assessing Officer has not made any enquiry on this information and reopened the case of the assessee and made the addition in dispu....... + More
- 2020 (12) TMI 1198 - ITAT JABALPUR
Addition u/s 68 - Unexplained cash creditors - onus to prove - HELD THAT:- A perusal of the material on record shows that the entire sum credited stands explained with reference the creditor's existing capital and/or current income. No verification of the same was however done by the AO. In fact, as explained by Sh. Bardia during hearing, the production of the creditors by the assessee was sought by the AO in the assessment proceedings as an alternate to the submission of an explanation in writing - Even so, the assessee, despite furnishing documentary evidences, offered to produce the creditors, and for which he referred to the assessee's communications to the AO dated nil and 07/12/2017 - It was for this reason that we have opined that the impugned credits are to be regarded as explained upon confirmation of the claims not clari....... + More
- 2020 (12) TMI 1197 - ITAT DELHI
Capital gain - collaboration agreement entered by assessee for a property - indexation of the cost the capital gain chargeable in the hands of the assessee - whether the transfer took place in Assessment Year 2007-08 as claimed by the Revenue or in Assessment Year 2009-10 as claimed by the assessee? - HELD THAT:- Hon'ble Supreme Court in the case of Balbir Singh Maini [2017 (10) TMI 323 - SUPREME COURT] held that the execution of unregistered Joint Development Agreement with an irrevocable Power of Attorney in favour of the Developer does not result in the "transfer" for capital gains liability. The agreement in the present case is not registered one, it does not have any impact in the eye of law for the purpose of Section 53A of the transfer of property act and similarly for defining transfer Under the income tax act. There....... + More
- 2020 (12) TMI 1196 - ITAT INDORE
Revision u/s 263 - LTCG - Assessee eligible for deduction u/s 54 - expenses incurred for furniture and Air Conditioners while constructing the residential house property - HELD THAT:- So far exercising of powers u/s 263 of the Act is concerned, we find no infirmity in the order of Ld. PCIT as the Assessing Officer has wrongly allowed the claim without examining that how much deduction can be allowed. Ld. Counsel for the assessee argued that this order could be rectified by the Assessing Officer u/s 154 of the Act. However Ld. Counsel for the assessee did not bring to our notice any such action being taken by the Assessing Officer. Hence on this ground revision of the order is justified. Adoption of the cost of acquisition of new asset - A residential house may have many other things, other than civil construction and including things like....... + More
- 2020 (12) TMI 1195 - ITAT INDORE
Rectification of mistake - Reopening of assessment on basis of audit objection raised by Revenue Audit Party - HELD THAT:- DR could not controvert the fact that before Hon'ble High Court of Madhya Pradesh it was stated on behalf of the Revenue that the assessment was not re-opened on the basis of audit objection. Hence, the Revenue has contrary stand. We therefore dismiss the Miscellaneous Application of Revenue.
- 2020 (12) TMI 1194 - ITAT MUMBAI
Revision u/s 263 - Exemption u/s 11 eligibility - dividend income received by assessee trust - HELD THAT:- As decided in Sir Dorabji Tata Trust [2020 (12) TMI 1121 - ITAT MUMBAI] observations so made by the learned Commissioner show that he has not even applied his mind to the undisputed facts of the case. If he had cared to look at paragraph 8 of the subject assessment order, he would have noticed that the Assessing Officer has already included the dividend income in the available gross receipts of the assessee trust and examined the application of the said income. That is beside the point that such an action was contrary to the claim of the assessee that once this income is held to be exempt under section 10(34), it cannot be brought to taxation under section 11 of the Act, and the rejection of the said claim is the subject matter of as....... + More
- 2020 (12) TMI 1193 - ITAT BANGALORE
TP Adjustment - Comparable selection - Geometric Software Solutions Co. Limited, Bodhtree Consulting Limited, Flextronics Software Systems Limited (Seg.) and Tata Elxsi Limited (Seg.) - HELD THAT:- All the four companies referred above were considered by co-ordinate bench in the case of Sharp Software Development India P. Ltd. [2017 (1) TMI 1734 - ITAT BANGALORE] and they have been held to be not good comparable companies. Accordingly, following the decision rendered by the co-ordinate bench in the case of Sharp Software Development India P. Ltd. (supra), we direct exclusion of four companies cited above Computation of book profit u/s. 115JB - A.O. took the view that the Provision for bonus is a contingent liability and hence, the same is required to be added to the net profit for the purpose of computing book profit u/s. 115JB - HELD THA....... + More
- 2020 (12) TMI 1192 - ITAT BANGALORE
TDS u/s 195 - interest income accrued in the hands of the foreign entity - Interest was waived later - Liability to deduct TDS on accrual basis - demand u/s. 201(1) and 201(1A) - HELD THAT:- Section 195 specifies that taxes will have to be deducted either at the time of credit of such income in the account of the payee or at the time of payment thereof in cash or any other mode. In the case of the assessee there is no interest credited to the payee's account and there was no payment made as per books of account. No expenditure was claimed towards interest payable. In the light of these facts, we find that the provisions of section 195 is not applicable. As per the terms of agreement, the interest for the F.Y. 2010-11 was required to be credited on 30.04.2011 and during this period, there was no interest required to be credited also. T....... + More
- 2020 (12) TMI 1191 - ITAT BANGALORE
TP Adjustment - comparable selection - HELD THAT:- Persistent Systems Limited - As segmental details were not available and it cannot be included in the list of comparables. Accordingly, we direct the TPO/Assessing Officer to exclude the company from the list of comparables. Sasken Communication Technologies Limited - As considered as not comparable in the case of LG Software India Pvt. Ltd. [2020 (8) TMI 832 - ITAT BANGALORE] in the Assessment Year 2011-12 on the reason that the company is functionally distinguishable to the assessee's company since Sasken Communication Technologies is dealing with the Media Products and R & D activities with no break up of segmental information. Accordingly, we direct the TPO/Assessing Officer to exclude this company from the list of comparables. Evoke Technologies Limited - When both the Assess....... + More
- 2020 (12) TMI 1190 - ITAT DELHI
Addition on account of buy back/prepayment of foreign currency convertible bonds (FCCBs) at discount - The assessee had availed Foreign Currency Convertible Bonds (FCCBs) from Europeon Union aggregating US $36 millions - Reason to make the addition is that FCCBs were utilised in increasing the depreciable asset of the assessee company - HELD THAT:- The assessee satisfied the conditions of RBI to buy-back FCCBs. The assessee also proved on record that all the conditions of RBI in this regard have been made by assessee company. Section 41(1) of the I.T. Act would not apply because the amount of FCCBs was not allowed as expenditure or trading liability in earlier year - no addition could be made under section 28(iv) - The assessee is in manufacturing business and has admittedly utilised the FCCBs by increasing the asset of the assessee compa....... + More
- 2020 (12) TMI 1189 - ITAT DELHI
TP Adjustment - selecting the tested party for the purpose of applying the TNMM - Comparable selection - HELD THAT:- While selecting the tested party for the purpose of applying the TNMM, the functional profile of the transacting entities is required to be taken into consideration and the entity having simpler functional profile i.e. the entity not assuming significant risks and employing non-routine intangibles should be selected as the tested party. We note that the assessee’s objection being selected as a tested party were not dealt in the proper perspective by the Ld. CIT (A) and, therefore, this issue needs re-examination by the Ld. CIT (A). Comparable selection - TPO has selected 99 comparables without actually conducting FAR analysis in respect of each comparable and has undertaken the exercise of selection without applying a....... + More
- 2020 (12) TMI 1188 - ITAT MUMBAI
Revision u/s 263 - Unexplained cash investment u/s 69 - Revision of assessment based on order of Settlement Commission - AO treated the cash loan given by the assessee as 'On Money' given to the builder for the purchase of flat and accordingly, AO made the additions - Builder Ahuja Group has accepted the unaccounted nature of the transaction before Settlement Commission - HELD THAT:- From the order passed u/s 263 of the Act, we notice that Ld. PCIT is trying to review the assessment based on order of Settlement Commission which was passed on 26.06.18 and coming to a new conclusion based on new information which is different from the view taken by the AO at the time of passing assessment order. As per the provision of section 263(1) Explanation-1(C), the order of the AO which was a special matter of any appeal before Commissioner, ....... + More
- 2020 (12) TMI 1187 - ITAT KOLKATA
Revision u/s 263 - Unexplained investment in the residential property - HELD THAT:- When the Assessing Officer adopts one of the course permissible in law and it has resulted in loss to the revenue, or where two views are possible and the Assessing Officer has taken one view with which the Ld. CIT does not agree, it cannot be treated as an order prejudicial to the interest of the revenue unless the view taken by the Assessing Officer is unsustainable in law. Reverting to the facts of the present case the AO has called for necessary details regarding the investment source in the said residential property and the assessee in their letter dt. 29.06.2016 received by the Department on 01-07-2016 has replied to all such queries and after such examination and enquiry only the AO has passed the assessment order, when investigation was done by the....... + More
- 2020 (12) TMI 1186 - ITAT AHMEDABAD
Income from salary - addition being the amount of salary refunded to the employer company - Double addition - appellant was working as Whole Time Director (WTD) with Sun Pharma Advanced Research Company Ltd. (SPARCL) and his remuneration was fixed at maximum salary of ₹ 3,50,00,000/- in AGM - HELD THAT:- Since there was limit for payment of remuneration to the whole time director as per the Company Act, 1956, therefore, the company has made an application to the Ministry of Corporate Affairs, Govt. of India for approving the salary of the whole time director as per the resolution passed in the annual general meeting dated 31st July, 2012. Central Government has approved the salary of the whole time director at a lesser amount. Thereafter, the company had made second application to the Central Government to approve the excess salary,....... + More
- 2020 (12) TMI 1185 - ITAT MUMBAI
Estimation of income - bogus purchases - CIT(A) restricting the disallowance of purchases to 12.5% as against 15% done by the AO - HELD THAT:- CIT(A) considered this aspect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and following case of CIT v. Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] correctly restricted the disallowance to 12.5% of the non-genuine purchases. Appeal of the Revenue is dismissed.
- 2020 (12) TMI 1184 - ITAT AHMEDABAD
Deduction u/s 10A - export revenue subsidy, Miscellaneous income and sundry balances written off as not derived from the business carried on by the Appellant and hence not eligible for deduction - HELD THAT:- As relying on M/S. PRIYANKA GEMS [2014 (3) TMI 938 - GUJARAT HIGH COURT]and M/S. GEM PLUS JEWELLERY INDIA LTD. [2010 (6) TMI 65 - BOMBAY HIGH COURT] once export is made, the profits/losses may arise due to variety of reasons from such export activity. Noticeably, sub-section (4) to Section 10A of the Act explicitly explains the term 'profits derived from the export of particles or things' to mean amount which bears to the 'profits of the business of the undertaking', the same proportion as the export turnover bears to the total turnover of the business carried on by the undertaking. What is required to be determined i....... + More
- 2020 (12) TMI 1183 - ITAT AHMEDABAD
Addition to closing stock towards unutilized CENVAT credit u/s 145A - HELD THAT:- The availability of CENVAT credit is dependent on the extent of utilization of credit against the liability arising to an assessee on goods manufactured and has no co-relation to the closing stock. The Excise Duty component on closing stock is thus required to ascertained independently as per quantum of stock. CIT (A) has rightly approached the issue on determination of exact liability by either inclusive or exclusive method. No justification in the action of the CIT (A) in dismissing the plea of the assessee altogether on the point. CIT (A), in our view, ought to have given a reasonable opportunity to the assessee for substantiating its claim that method of accounting followed by the assessee does not impinge upon the provisions of Section 145A of the Act, ....... + More
