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- 2020 (2) TMI 1368 - ITAT KOLKATA
TDS u/s 195 - disallowance u/s 40(a)(i) - Non deduction of tds on foreign associate fees - as per AO payments made by the assessee to the foreign attorneys were in connection with profession carried on by him in India - Scope of amendment to Section 9(2) - HELD THAT:- In the present case the assessee is a Patent Attorney who renders legal services in his capacity as an Advocate in India. The clients of the assessee hold valuable IPRs which need registrations with the Patent or IP authorities so that IPRs are protected from unauthorized use by others. Since the clients of the assessee have markets beyond the boundaries of India, they seek assessee’s assistance for obtaining registrations under the patent laws of the foreign countries where products of the customers are marketed under their IPRs. For the services rendered by the forei....... + More
- 2020 (2) TMI 1365 - ITAT BANGALORE
TP Adjustment - determination of ALP in respect of an international transaction of rendering software development services [SWD services] by the assessee to its Associated Enterprise (AE) under the provisions of section 92 of the Act - Comparable selection - AY 2014-15 - HELD THAT:- Assessee is a company engaged in the business of software design, development, testing, support and implementation of computer software. The assessee is a wholly owned subsidiary of Yahoo (non resident), thus companies functionally dissimilar with that of assessee need to be deselected. Thirdware Solutions Ltd., Infosys Ltd. & Persistent Systems Ltd. need to be deselected accordingly. No adjustment made to he profit margins on account of working capital differences between the tested party and the comparable companies - HELD THAT:- Revenue authorities were....... + More
- 2020 (2) TMI 1356 - ITAT MUMBAI
TP adjustment - Comparable selection - assessee has adopted TNMM to be the most appropriate method to benchmark the transaction with OP/TR as the PLI and with the Assessee as the tested party. The assessee has an entity level PLI working of 0.74% - HELD THAT:- Identical issue was decided in the case of Turner International India P. Ltd. [2018 (8) TMI 259 - ITAT DELHI] has sufficient cogency. The business activity of the assessee in that case was marketing and distribution of satellite TV channels. Akin to that the assessee in the present case is also involved in distribution of various Star as well as third party channels in India. In such circumstances, selection of comparables engaged in software distributor has been accepted by the ITAT. Accordingly, we accept the submission of learned counsel and direct the TPO to examine his submissi....... + More
- 2020 (2) TMI 1355 - ITAT DELHI
Unexplained loans - Non appearance by assessee - HELD THAT:- Neither the assessee appeared nor any paper book has been filed. The assessee was, therefore, notified further date of hearing for 05.02.2020 through registered post, but, no evidence is filed and even nobody appeared on behalf of the assessee. Assessee did not file any supporting documents of these additions before the authorities below and same is the position before the Tribunal. The authorities below have given sufficient opportunity of being heard to the assessee, but, assessee did not produce any evidence in respect of any of the additions. In the absence of any evidence on record and any representation from the side of the assessee, we confirm all the additions and dismiss the appeal of the assessee. Appeal of the assessee is dismissed.
- 2020 (2) TMI 1354 - ITAT CUTTACK
Reopening of assessment u/s 147 - valid reason to believe - HELD THAT:- Reasons recorded by the AO are replied by the assessee in response to notice u/s. 148 and rebutted that the admission of ₹ 7,00,000/- during the course of survey and submitted that he has not made any excess investment of ₹ 7,00,000/- and other queries are also replied. No tangible materials before the AO for reopening the assessment u/s.147 . As regards to the contention of Ld. D.R. that there was audit objection, as perused the assessment records and find that there is no such mention of audit objection in the satisfaction note. In the absence of any fresh material, the reappraisal of same material to initiate reassessment proceedings tantamounts to change of opinion and hence bad in law - Reassessment proceedings and first appellate order are dismissed. - Decided in favour of assessee.
- 2020 (2) TMI 1352 - ITAT CUTTACK
Deduction u/s.80P(2) - Whether assessee-society is a "Cooperative Society" or "Primary Cooperative Bank" - HELD THAT:- DR could not controvert that the assessee does not possess a banking license from the RBI which is essential for an entity to engage in banking business. Since the society is not a primary co-operative bank, it would be eligible for deduction u/s. 80P(2) of the Act - No infirmity in the order of the ld CIT(A), which is hereby confirmed and grounds of appeal of the revenue are rejected. Appeal of the revenue is dismissed.
- 2020 (2) TMI 1351 - ITAT BANGALORE
Disallowance of wages - Whether adhoc disallowance should be deleted? - CIT (a) restricted the disallowance to 10% of wages expense as against about 20% disallowance made by the AO -HELD THAT:-. Assessee has not furnished any comparison chart of wages expenses percentage in the present year and earlier years. Hence, we decline to interfere in the order of CIT (A) on this issue. Accordingly, Ground No. 3 is rejected. Disallowance of Site Expenses - HELD THAT:- AO should have highlighted some anomalies in the claim. Thereafter he observes that the AO notes in general terms in the remand report that bills/vouchers were not produced in full for verification and still, he partly confirmed the disallowance to the extent of ₹ 1 Lac out of ₹ 5 Lacs disallowed by the AO. In view of these findings of CIT (A) as noted above, we are of th....... + More
- 2020 (2) TMI 1350 - ITAT MUMBAI
Provisions for pension - CIT(A) confirming the disallowance made by AO in respect to assessee’s claim of deduction of provision - HELD THAT:- Provision for pension is not towards contribution to any fund, but it is payable to the employees directly. Also, Sr. no. xi of the aforesaid instruction states that contingent liability cannot constitute deductible expenditure. As elaborated provision towards pension is not a contingent liability. It is an ascertained liability and has been provided for in the books of account on a scientific basis, as per the actuarial valuation. Further, it would also be contrary to the judgement of the Supreme Court in the case of Metal Box Co. of India [1968 (8) TMI 53 - SUPREME COURT] wherein observed that contingent liabilities properly discounted were to be allowed as a deduction. In view of the above ....... + More
- 2020 (2) TMI 1349 - ITAT CHENNAI
Condonation of delay of 317 days - submissions of assessee that CIT(A) has passed an exparte order and against that order, the assessee filed a petition for restoration of the appeal and CIT(A) has not passed any order of restoration and since the assessee was waiting for the order of restoration and hence, the assessee was unable to file the appeal before the Tribunal in time - HELD THAT:- Admittedly, the assessee has not filed any material showing that the assessee has filed restoration petition before the ld. CIT(A) for recalling the exparte order passed by him. When the Bench asked the ld. Counsel about the restoration petition filed before the CIT(A), it was replied that they have no proof to show that the assessee had filed such petition to recall the order passed by the ld. CIT(A) and he agreed that there is no specific provision u....... + More
- 2020 (2) TMI 1348 - ITAT KOLKATA
Bogus currency derivative loss - addition based on Shri Sachet Saraf’s search statement - HELD THAT:- Assessee’s detailed paper book comprising of 200 pages including contract notes issued by the broker relating to currency derivative transactions, corresponding bank statement, various judicial precedents and taxpayer’s submission before the CIT(A) stands perused. Instant issue of bogus currency derivative loss based on Shri Sachet Saraf’s search statement is no more res integra as tribunal’s co-ordinate bench’s decision in M/s Tirupati Awas Pvt. Ltd. [2018 (3) TMI 1883 - ITAT KOLKATA] wherein held there was no corroborative evidence which supports the view of the AO that the said transaction was unexplained. No additional evidence, which was filed before the CIT-A, but not before the AO. CIT-A deleted ....... + More
- 2020 (2) TMI 1344 - ITAT AHMEDABAD
Addition u/s 68 - bogus penny stock transaction and earned bogus long term capital gain - HELD THAT:- As neither statement was supplying to the assessee nor cross examination was allowed by the ld. A.O. Therefore, in our considered opinion, assessee has discharged his onus and no addition can be sustained in the hands of the assessee.
- 2020 (2) TMI 1343 - ITAT AHMEDABAD
Addition u/s 68 - accommodation entries in various forms like bogus unsecured loans, bogus share capital, bogus sales and purchase etc. and charged commission thereon at the rate of 0.10% to 0.30% depending on the nature of entry - HELD THAT:- AO except confronting the assessee with some details obtained from Shri Rahul Jhunjhunwala and his company, not able to produce any other material. AO should have granted an opportunity to cross-examine Shri Rahul Jhunjhunwala, Shri Satish Saraf or any other concerned whose statements he was relying upon, because all these statements were not recorded by the AO during the course of assessment proceedings. These were recorded by some other authorities during some other investigations. This can be used only as an information for initiating action against the assessee. They cannot be treated as gospel ....... + More
- 2020 (2) TMI 1338 - ITAT CHENNAI
Validity of reopening of assessment u/s 147 - eligibility of reasons to believe - reopening after four years - HELD THAT:- The assessment for the assessment year 1989-90 was completed u/s. 143(3) on 29.06.2011. In such case, after the expiry of 4 years from the end of the relevant assessment year, the AO can proceed to reassess the income only when he records the reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment in that assessment year. In this case, the material on which the Assessing Officer reopened were filed by the assessee was very well considered by the AO. Therefore, the notice issued u/s. 147 does not satisfy the legal condition laid in first proviso to section 147 - Decided in favour of assessee.
- 2020 (2) TMI 1336 - ITAT DELHI
Reopening of assessment u/s 147 - Misusing Client Code Modification facility - fictitious profit or loss entries received - information from the Asstt. Director of Income Tax (Investigation), (Unit)1(3), Ahmedabad through CD - HELD THAT:- AO has blindly relied upon the Investigation Wing which itself is not based on any material against the assessee. The mere recording of reasons on the basis of information from Investigation Wing and issuing notice for initiation of reassessment proceedings does not constitute application of mind much less independent application of mind. Therefore, the proceeding is without jurisdiction. It is noted that AO has not investigated the matter himself and has not made any enquiry to corroborate the Information of the Investigation Wing on which basis the case of the assessee has been reopened, meaning thereb....... + More
- 2020 (2) TMI 1324 - ITAT BANGALORE
Deduction u/s 80P - interest income from fixed deposit and other income - HELD THAT:- As decided in M/S. THE JAYANAGAR CO-OPERATIVE SOCIETY LTD.[2019 (7) TMI 1219 - ITAT BANGALORE] the matter was restored back to the file of AO by the Tribunal for a fresh decision after examining the facts in the light of the judgment of Hon’ble Apex Court in the case of The Totgars Co-operative Sales Society Ltd. [2010 (2) TMI 3 - SUPREME COURT] and of Hon’ble Karnataka High Court in the case of Tumukur Merchants Souharda Co-operative Ltd. [2015 (2) TMI 995 - KARNATAKA HIGH COURT].Respectfully following this Tribunal order, in the present case also, we restore the matter back to the file of AO for fresh decision - Appeals of the assessee are allowed for statistical purposes.
- 2020 (2) TMI 1312 - ITAT BANGALORE
Addition on account of low G. P. and N. P. - reasons for fall in GP and NP - Non rejection of books of accounts - CIT- A deleted the addition - HELD THAT:- We find that learned CIT (A) has followed the Judgment of Hon’ble Karnataka High Court rendered in the case of CIT vs. Anil Kumar & Co. [2016 (3) TMI 184 - KARNATAKA HIGH COURT]. This is admitted position of fact that books are not rejected in the present case and the assessment is not completed u/s 144. The AO has simply adopted the GP and NP rate of the preceding year. Hence, we decline to interfere in the order of CIT (A). Revenue’s appeal is dismissed.
- 2020 (2) TMI 1310 - ITAT DELHI
Deduction u/s 80HHC - CIT(A) directing the ld AO to exclude sales and excise duty as part of the total turnover for computing the deduction - HELD THAT:- In assessee's own case for Assessment Year 1995-96, 1997-98, 2000-01 and 2001-02 onwards wherein, the coordinate bench has directed the ld AO to not to consider the sales tax and excise duty in total turnover for computing the deduction u/s 80HHC of the Act. Further, the above issue is also squarely covered in favour of the assessee by the decision of the Hon'ble Supreme Court in CIT Vs. Laxmi Machine Works [2007 (4) TMI 202 - SUPREME COURT]. Disallowance of royalty - allowable revenue expenditure - HELD THAT:- The above issue is squarely covered in favour of the assessee by the decision of the Hon'ble Delhi High Court [2017 (5) TMI 469 - DELHI HIGH COURT] wherein, the appeal....... + More
- 2020 (2) TMI 1305 - ITAT PUNE
Reopening of assessment u/s 147 - reasons for reopening of assessment - HELD THAT:- As decided in MR. KAILASH KANHAIYALAL GIDWANI, MR. SUNIL KANHAIYALAL GIDWANI, MR. AMIT KANHAIYALAL GIDWANI [2019 (10) TMI 905 - ITAT PUNE] transaction was properly recorded in the assessee’s books of account. The assessee is payer and not the recipient of loan. Once the assessee paid ₹ 2.00 lakh to Kanhaiyalal Vishandas Gidwani out of her regular books of account, there cannot be any question of the assessee not substantiating the source of loan, which is overtly from the regular books of account maintained by her. This sort of enquiry, if warranted, ought to have been conducted in the hands of the recipient to justify the source of the loans received and not the payer of the loan, who has given loan out of her regular books of account. It is c....... + More
- 2020 (2) TMI 1304 - ITAT KOLKATA
Penalty u/s 271(1)(c) - Defective notice - HELD THAT:- The irrelevant portion have not been struck off by the A.O. in the notice. The exact charge/s against the assessee as to whether he concealed the particulars of his income or furnished inaccurate particulars of such income is not clear. It is not clear whether the notice was issued for levy of penalty for failure to comply with a notice u/s 142(1)/143(2) of the Income Tax Act, 1961. While the notice appears to be for furnishing inaccurate particular of income the penalty was levied for concealment of income. As relying on DR. MURARI MOHAN KOLEY [2018 (9) TMI 1 - CALCUTTA HIGH COURT] quash the impugned penalty imposed by the Assessing Officer under section 271(1)(c) of the Act and confirmed by the Ld. CIT(A). - Decided in favour of assessee.
- 2020 (2) TMI 1281 - ITAT DELHI
Unexplained investment u/s 69 - assessee has purchased old tenanted properties situated in slum areas, filed copies of sale deeds of properties in the similar vicinity - HELD THAT:- AO in the instant case has conducted independent enquiry by recording the statement of the seller of both the properties wherein he has categorically admitted by stating the reasons for selling the property at price below the prevalent circle rates. Further nothing has been brought on record to prove that the assessee has paid anything extra over and above the value of agreement in any other form of consideration. Nothing has been brought on record that money has emanated from the assesee’s coffers. The sole reliance in the instant case is the basis of estimates made by the DVO in the valuation report. It has been held in various decisions that additions....... + More