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- 2021 (5) TMI 995 - ITAT PUNE
Exemption u/s 11 - Registration application made u/s 12AA denied on the ground of non-submission of certain details - Denial of natural justice - HELD THAT:- On one hand the assessee contends that the provisions of principles of natural justices were not followed by the Department and the opportunity of hearing was not properly accorded to the assessee in this case and on the other hand, the facts demonstrate as from the order of the Ld. CIT (Exemption) that he could not arrive at proper satisfaction as regards the genuineness of the activities of the trust since the relevant details as called for by the Ld. CIT (Exemption) were not uploaded in the ITBA portal by the assessee. The provision of section 12AA of the Act mandates that the satisfaction has to be arrived at by the Ld. CIT (Exemption) before granting any registration under the s....... + More
- 2021 (5) TMI 993 - ITAT HYDERABAD
Addition being the amount of PF and ESI u/s 36(1)(va) - Delayed employees contribution of PF and ESI - as per assessee amount remitted to the concerned accounts before the due date of filing the return of income - HELD THAT:- As decided in ELICO LIMITED case [2020 (11) TMI 698 - ITAT HYDERABAD] no disallowance could be made in respect of employees contribution of PF and ESI if the same are deposited before the due date of filing the return of income. Accordingly, we set aside the order of Ld.CIT(A) and delete the addition made by the AO. The appeal of the assessee on this ground is allowed.
- 2021 (5) TMI 989 - ITAT HYDERABAD
TP Adjustment - arm’s length price ‘ALP’ adjustment of ₹ 1,20,78,616/- qua interest on receivables involving its overseas Associated Enterprise ‘AEs’ - HELD THAT:- We find no merit in the instant argument since such a short term deposit cannot be taken at par with an international transaction u/s.92B of the Act since the latter involves foreign currency and overseas market conditions. In addition to this, learned lower authorities have also not adopted any comparable in the very segment as well so as to come to the conclusion that the assessee’s receivables in case of overseas AEs involved more than the market practice of reasonable time period. We keep in mind all these clinching aspects and direct the TPO to delete the impugned ALP adjustment in issue. The assessee’s former substantive gro....... + More
- 2021 (5) TMI 968 - ITAT MUMBAI
Income chargeable to tax in India - IDR dividend received from SCB-India - receipts from India based depository, i.e., Standard Chartered Bank- India, in respect of shares of Standard Chartered Bank plc- UK represented by the India Depository Receipts (IDRs) - business connection between this income and India - assessee before us is a company incorporated in, and fiscally domiciled in, Mauritius - when is the amount, so distributed to the IDR holders on account of dividend receipts, can be said to be received in the hands of the IDR holders- at the point of time when the amount is received by BNY Mellon outside India, on behalf of the SCB-India, or when is it received by the IDR holders in India from the SCB-India? - HELD THAT:- We find that it is an admitted position all along that SCB-India is a branch office of Standard Chartered Bank ....... + More
- 2021 (5) TMI 967 - ITAT HYDERABAD
Unexplained sundry/trade credits - CIT-A deleted the addition - HELD THAT:- The observations of the CIT(A) are worth to mention here that “it is relevant to observe that the claims of the expenses relatable to the credits under reference were not denied by the AO, and there was no disallowance to the extent, as could be seen from the assessment order. It was not the case of the AO to show that such amounts are not allowable as business expenses. Where the expenses, which were not denied to be allowed as business expenses, if the liability related to such expenses may not be treated as unexplained liability or credit and catena of judicial decisions supports this view.” We, therefore, do not find any reason to interfere with the order of CIT(A) in deleting the addition and upholding the same, we dismiss the ground raised by the revenue on this issue. Appeals of the revenue are dismissed.
- 2021 (5) TMI 966 - ITAT HYDERABAD
Addition for unaccounted cash - HELD THAT:- As perusal of the statement, AO has observed that the assessee has purchased a land of 2 acres in his name as well as purchased a house in Hyderabad in his wife’s name - This transaction itself has accepted by the assessee during the course of search proceedings at question & answer No. 15. Therefore, we are of the view that the AO has rightly made the addition for unaccounted cash. The assessee has submitted before the CIT(A) wrong facts that in the particular land there was a well and bore-well, but, on perusal of the sale deed executed on 02/08/2012, nowhere it has been mentioned under the ‘Declaration’ that there is a well or bore-well -When the property was purchased in 2001 was a dry agricultural land, but, subsequently, when sale was materialized on 02/08/2012, nowhe....... + More
- 2021 (5) TMI 965 - ITAT HYDERABAD
Correct head of income - whether the very amounts could also be allowed to be assessed under the head ‘business’ once they have been assessed as income from other sources? - HELD THAT:- As assessee has itself conceded its challenge to correctness of learned lower authorities’ action treating the impugned sums; assessment-year wise as income from house property and business income; as the case may be; respectively. Faced with this situation, we deem it appropriate to restore the instant issue back to the file of Assessing Officer to this limited extent only to the extent that whatever is the income assessed as income from other sources in the assessee’s hands out of its books/P&L A/c of the corresponding assessment years, shall not be assessed under the head business income as well so as to avoid double addition....... + More
- 2021 (5) TMI 964 - ITAT DELHI
Disallowance u/s 14A of interest expenditure - assessee has disallowed suo motto u/s 14A - As argued AO failed to record any satisfaction as to the correctness of the claim of the assessee - HELD THAT:- The details reasons given of the ld AO at page 7 and 8 of the assessment order clearly shows that AO has recorded proper satisfaction as provided u/s 14A(2) of the act - when the assessee was questioned about the suo motto disallowance of ₹ 2 lacks, its basis and its working the assessee failed to provide the same to the AO. AO also held that this itself shows that the assessee is contradicting its own stand that it has not incurred any expenditure for earning of the exempt income. In view of this, we do not find any infirmity so far as the recording of the satisfaction u/s 14A(2) of the AO is concerned for invoking provision of Rule....... + More
- 2021 (5) TMI 963 - ITAT HYDERABAD
Reopening of assessment u/s 147 - value of shares purchased by the assessee as penny stocks were treated as unexplained investment u/s 69B - HELD THAT:- As relying on SRI NARENDER KUMAR GUPTA VERSUS ASSTT. CIT CIRCLE 7 (1) HYDERABAD [2021 (5) TMI 887 - ITAT HYDERABAD] this appeal of the assessee is also remitted to the file of the Assessing Officer with a direction to supply the assessee, the reasons for reopening of the assessment and only after disposal of the objections, if any, raised by the assessee to the reopening, the Assessing Officer shall proceed to recompute the income of the assessee in accordance with law. Needless to mention that the assessee shall be given a fair opportunity of hearing. Assessee’s appeal is treated as allowed for statistical purposes.
- 2021 (5) TMI 962 - ITAT DELHI
Exemption u/s 11 & 12 - Charitable activity u/s 2(15) - exemption denied as assessee was involved in trade, commerce or business as there was a restaurant run in the name of Dilli Dastarkhwan in the premises of the assessee and the assessee was receiving income from the restaurant - HELD THAT:- We find that the Ld.CIT(A) has followed the decision of the Tribunal pertaining to Assessment Year 2009-10. [2014 (7) TMI 1339 - ITAT DELHI] - The Revenue has not brought any other binding precedent into our notice. Therefore, we find that there is no reason to interfere in the findings of Ld.CIT(A). Ground No.1 raised by the Revenue in this appeal is dismissed. Allowance of depreciation on fixed assets - CIT-A allowed deduction - HELD THAT:- CIT(A) has followed the judgement of Hon’ble Delhi High Court in the case of DIT(Exemption) vs Ch....... + More
- 2021 (5) TMI 961 - ITAT PUNE
Penalty imposed u/s. 271B - non filing of audit report within stipulated time - assessee filed two sets of written submissions before the CIT(A) - HELD THAT:- The first reason has canvassed by the assessee that the Hard Disk of Computer has been corrupted and data therein is vanished for F.Y. 1999-2000 relating to A.Y. 2000-01 which is the year under consideration but however as rightly pointed by the Ld. DR no supporting evidences filed what steps the assessee has taken for the year under consideration and also for subsequent years. DR demonstrated that there was no evidence before two Revenue authorities below and also before this Tribunal substantiating the steps taken by the assessee supporting the cause for delay canvassed by it. In our opinion, the cause of Hard Disk Drive of Computer system being corrupted and the data is vanished ....... + More
- 2021 (5) TMI 960 - ITAT JAIPUR
Reopening of assessment u/s 147 - borrowed satisfaction v/s independent application of mind - additions on different ground - HELD THAT:- Heart of the Section 147 is the formation of belief by the A.O. that income has escaped assessment. The reasons so recorded have to be based on some tangible material and that should be evident from reading the reasons. This is the bare minimum mandatory requirement of the first part of Section 147(1) of the Act. Merely saying that `loan has been advanced’ or `ITR has not been filed’, without disclosing the reasons, which led the A.O. to hold such a belief, does not confer valid jurisdiction on the A.O. to take action u/s 147 and 148 as has already been held by the Hon’ble Gujarat High Court in the case of Birla VXL Ltd. [1995 (9) TMI 45 - GUJARAT HIGH COURT] In the case of ITO v. Lakh....... + More
- 2021 (5) TMI 959 - ITAT JAIPUR
Unexplained income u/s 69A - undisclosed cash deposit in bank a/c - HELD THAT:- From the cumulative consideration of both the charts i.e. chart containing agriculture income disclosing the return of income and also the chart containing cash flow statement, we noticed that the department had given benefit of the current year’s agricultural income to the tune of ₹ 25,17,195/- - from the cash flow statement, it was reflected that during the year under consideration, total cash generation was ₹ 50,48,966/- and the opening cash balance for the year under consideration was ₹ 22,91,771/-, therefore, under such circumstances, the explanation put forth by the assessee that the cash deposited by the assessee was from the agricultural and other income as well as from the accumulative past savings of the preceding years appear....... + More
- 2021 (5) TMI 958 - ITAT CHANDIGARH
Conversion of limited scrutiny into complete scrutiny - HELD THAT:- Instruction of the CBDT instruction No. 5/2016 dated 14.07.2016 shows that to convert the limited scrutiny into complete scrutiny, the Assessing Officer shall be required to form a reasonable view that there is a possibility of under statement of income and that view should be based on credible material or information available on record and such a view should not be based on mere suspicion, conjecture or unreliable resources and there should be a direct nexus between available material and formation of view. However, the above conditions are not fulfilled in this case. AO has not referred to any credible or reliable material or information to form the view that there was a possibility of under assessment of income in this case. The AO has merely made certain disallowance....... + More
- 2021 (5) TMI 957 - ITAT CHANDIGARH
Reopening of assessment u/s 147 - assessee had shown fixed assets but he had not offered any income from the said property except agriculture income - HELD THAT:- In our view this is a vague reason. Merely possession of a fixed asset does not mean that the assessee might have earned any income from the said asset which would have escaped assessment. Admittedly the assessee owns agricultural land where upon certain construction has been made by the assessee. It has been used for its own purposes. The reasons recorded by the Assessing Officer do not disclose that the assessee has used any of his assets for any business or rental purposes. The formation of belief by the AO in this case regarding the escapement of income of the assessee, in my view is based on just assumptions and presumptions and there was no reliable material available with....... + More
- 2021 (5) TMI 956 - ITAT CHANDIGARH
Unexplained cash found during the search action - assessee has submitted that neither any incriminating material nor any unexplained expenditure was found during the search action in respect sum surrendered by the assessee company - HELD THAT:- A separate surrender of ₹ 97.11 lacs has been made by Shri SB Bajaj Director of the assessee company on account of unexplained cash found during the search action. However, so far as the surrender of ₹ 15 lac to cover any discrepancy is concerned, the AO has not pointed out any unexplained credit in the books of account, any unexplained investment, any unexplained money, bullion or jewellery, any unexplained expenditure or any amount of loan repaid in the assessment order in this respect. Therefore, the provisions of Section 68, 69, 69A, 69B, 69C and 69D are not attracted on the surrend....... + More
- 2021 (5) TMI 955 - ITAT MUMBAI
Penalty u/s.271(1)(c) - Defective notice u/s 274 - HELD THAT:- As per the record, the assessment order speaks about levying the penalty on account of taken the action in view of provisions u/s 274 r.w.s. 271 (1)(c) of the Act but the notice nowhere specify any limb to levy the penalty. The notice is not justifiable in view of the law settled by the Bombay High Court in the case of CIT-11 Vs. Samson Perinchery. [2013 (11) TMI 369 - ITAT MUMBAI] It is quite clear that the penalty is not leviable in accordance with law. Further, we noticed that the penalty was levied on account of filing the return of income in pursuance of notice u/s 153 r.w.s 153C of the Act. In the case of Kirit Dahyabhai Patel [2015 (1) TMI 201 - GUJARAT HIGH COURT]. It is quite clear that the no penalty is leviable in the said circumstances, therefore, we delete the penalty. - Decided in favour of assessee.
- 2021 (5) TMI 953 - ITAT JAIPUR
Reopening of assessment u/s 147 - transaction of sale of immovable property for the specified consideration - as argued notice issued U/s 148 of the Act was without jurisdiction and bad in law - HELD THAT:- From perusal of the record, we noticed that in the present case, the A.O. had recorded the reasons for reopening of assessment by mentioning that “the assessee has not field its return of income. Later on, it was noticed that the assessee has sold a property of Jaipur to Smt. Meena Sharma during the F.Y. 2008-09 for sale consideration of ₹ 18,75,000/-, however of the Sub-Registrar had adopted final face value of such property at ₹ 16,37,653/- for the purpose of charging of stamp duty. But on verification of the department portal it was noticed that the assessee had not shown capital gain. We have a reason to believe t....... + More
- 2021 (5) TMI 951 - ITAT JAIPUR
Penalty u/s 272A(2)(e) - return in this case was filed on 12/07/2017 as late by 2537 days - HELD THAT:- Assessee being an educational institution whose total receipts were less than ₹ 1.00 crore and thus falls U/s 10(23C)(iiiab) of the Act. Therefore, the entire income of the assessee was exempt and as per provisions of Section 139(4C)(e) of the Act the person is required to file the return where its income exceeds the maximum amount which is not chargeable to income tax. However, in this case, the assessee has filled its return of income declaring the nil income and assessment has also 'been completed at nil income vide assessment order dated 25.12.2017 u/s 143((3)/148 of the Act in the status of educational institution. The assessee was not required to file the return on or before 31.07.2010 and thus, in this way, no penalty could have been imposed u/s 272A(2)(e) - Decided in favour of assessee.
- 2021 (5) TMI 950 - ITAT MUMBAI
Addition of on-money - Quantification of the income assessable - assessee argued estimation of the profit element embedded in the on-money receipts @20% by the CIT(A) be substituted by that shown by the assessee @12% - Quantification of the income assessable - HELD THAT:- s the receipt of on-money is inextricably interlinked and in fact interwoven with the corresponding sale transaction accounted for by the assessee in its books of account, the same, thus, cannot be divorced therefrom, and the income element therein embedded would be required to be brought to tax in the same year in which the sale transaction had been accounted for or would be accounted for by the assessee as per its regular method of accounting that has been accepted by the department.Our aforesaid view that the conduct of search and seizure operation in a particular yea....... + More