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2021 (10) TMI 1432
Assessment u/s 153A - Addition u/s 68 - receipt of share application/share capital - HELD THAT:- Scope of search assessments u/s 153A in respect of concluded and unabated assessments is narrower in its sweep and restricts the right of the AO to examine the issue emanating from some incriminating material. In the absence of any connection with the incriminating material unearthed in search proceedings of assessee, additions/disallowances in respect of concluded assessment i.e. AYs. 2006-07 to 2009-10 in instant appeals, are not permissible in l....... + More
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2021 (10) TMI 1428
Correct head of income - LTCG - Treating the capital asset as stock in trade - assessee is a real estate company and no addition in WIP was made during the yea - DR submitted that the Assessing Officer has rightly worked out the business profit on this transaction treating the same as stock in trade - CIT(A) deleted the addition - HELD THAT:- As continuous stand of the revenue was these are work in progress treated to be as capital asset and not as stock-in- trade. The transfer of the hotel on sale cannot be termed as short term capital gain o....... + More
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2021 (10) TMI 1427
Validity of reassessment proceedings - infraction of NJP (Nature Justice Principle) - writ petitioner had barely 2 hours and 3 minutes to respond to said SCN - HELD THAT:- As reasonable time has not been given to the writ petitioner/Assessee to respond to said SCN much less ample or adequate time. Another facet of the matter is, the writ petitioner managed to respond (partially though) and sought for two weeks time to send the other documents, considering the nature of variation, this Court is of the considered view that it is only appropriate....... + More
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2021 (10) TMI 1420
TP Adjustment - Foreign Exchange Fluctuation - international transaction or not? - HELD THAT:- Since the forex difference arises out of an international transaction, it is pertinent for the assessee to pass on the forex fluctuation to its AE. Hence, we hold that the assessee has correctly treated it under the operating income. Interest on Receivables - TPO reclassified the outstanding receivables beyond the credit period of 30 days as deemed loans to the AE and treated them as separate international transaction - TPO by applying a markup of 40....... + More
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2021 (10) TMI 1419
Taxability of profits of life insurance business - transfer from Share Holders Account to Policy Holder s Account and shown as part of surplus in the actuarial valuation - Whether was only transfer asset and not taxable u/s 44 of the act read with Rule 2 of the First Schedule? - HELD THAT:- Said position qua the issue in question as decided by co-ordinate bench of Tribunal vide order [ 2017 (3) TMI 1696 - ITAT MUMBAI] has not been controverted by DR, we are of the considered view that when undisputedly, the assessee is carrying on life insuran....... + More
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2021 (10) TMI 1417
Penalty levied u/s 271FA - non-filing of Annual Information Return as required u/r 114E of the I.T. Rules - Proof of reasonable cause in terms of sec.273B assessee is a co-operative bank - HELD THAT:- As decided in case of The Mandya Dist. Co-op. Central Bank Ltd. [ 2020 (3) TMI 1455 - ITAT BANGALORE] notice that the original provisions of Rule 114E of Income tax Rules did not include co-operative bank and it was inserted only in the amended provisions of Rule 114E, which came into effect from 1.4.2016. Accordingly, there is merit in the submi....... + More
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2021 (10) TMI 1413
Exemption u/s 80-P - claim denied as petitioner is not a Co-operative Society within the meaning of Section 2(19) - HELD THAT:- As decided in Swabhimani Souharda Credit Co-operative Ltd [ 2020 (1) TMI 831 - KARNATAKA HIGH COURT] all entities registered under the said Act of 1997 are Cooperative Societies within the meaning of Section 2(19) of the IT Act, 1961 and that they would be entitled to stake their claim for exemption under Section 80-P. In view of the decision of M/s. Swabhimani Souharda Credit Cooperative Ltd.,(supra), we are of consi....... + More
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2021 (10) TMI 1412
Exemption u/s 11 - scope and amplitude of the definition charitable purpose - correct interpretation of the proviso to Section 2(15) for charitable purpose - scope of amendment to section 2[15] - HELD THAT:- As the issue involved herein is squarely covered by the Co-ordinate Bench ruling of this Court in the assessee s own case in Karnataka Industrial Area Development Board [ 2020 (11) TMI 483 - KARNATAKA HIGH COURT] As no reasons to differ from the findings of the Co-ordinate Bench on the issue involved herein. Hence, we answer the substantial questions of law in favour of the assessee
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2021 (10) TMI 1408
Computation of operating income/loss - Tribunal directing the assessing authority to include the foreign exchange fluctuation loss or gain as part of the operating income/loss - HELD THAT:- This issue is covered by the decision of this Court in Pr. Commissioner of Income Tax and Another V/s. M/s. NXP Semi Conductors India Pvt. Ltd. [ 2018 (7) TMI 2311 - KARNATAKA HIGH COURT] where one of us Hon ble SSJ was the member, considering the identical question, placing reliance on the Principal Commissioner of Income Tax and Another V/s. M/s. Softbran....... + More
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2021 (10) TMI 1407
Validity of assessment u/s 144B - Assessment Order has been passed without following principles of natural justice and without even issuing a show-cause notice with a draft Assessment Order as mandatorily required u/s 144B - HELD THAT:- Respondents have filed an Affidavit of one Deputy Commissioner as affirmed that from the assessment order it appears that there was no show cause that was issued to the petitioner and unable to state as to why the faceless assessment centre has not issued a draft assessment order. In view of this candid admissi....... + More
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2021 (10) TMI 1403
Disallowance made of provision of stock obsolescence being charged to the profit and loss account - HELD THAT:- Since the issue already stands adjudicated as above in the preceding assessment year, A.Y. 2005-06 [ 2021 (7) TMI 1408 - ITAT CHANDIGARH] the decision rendered therein will apply to the issue in all the remaining years concerned wherein as held that claim of the assessee as fully justified vis a vis write off of vaccines since undoubtedly such vaccines were not capable of being used beyond expiry period and had no realizable value th....... + More
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2021 (10) TMI 1402
Expansion of Scope of limited scrutiny to complete scrutiny - CIT(A) held that the limited scrutiny can be converted into full scrutiny with the approval of higher authorities and the assessee could not produce any evidences to show that approval from concerned authority was not taken - HELD THAT:- As perused the material on record and it is noticed that nowhere in the assessment record, AO has made any reference that any approval of the higher authority was taken for converting the case of the assessee from limited scrutiny to the detailed sc....... + More
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2021 (10) TMI 1401
Income taxable in India - Amounts received for leasing of alloys taxed as royalty - India US DTAA - assessee being a non-resident company incorporated in accordance with the corporate laws of United States of America and a tax resident of that County - HELD THAT:- Royalty for design of bushing is not paid by OCIPL to OCNLIC and payment to assessee is only towards lease rentals i.e. bushings made of alloys comprising Platinum and Rhodium. We note that the assessee has not provided any services to OCIPL and OCIIPL inconnection with intellectual ....... + More
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2021 (10) TMI 1400
Revision u/s 263 - scope of limited scrutiny or expanded the scope of limited scrutiny - assessee s case was selected under limited scrutiny category on Low income in comparison to high loan / advances / investments in shares appearing in balance-sheet and Minimum alternate tax (MAT) liability mismatch - HELD THAT:- Perusal of the notices issued u/s 142(1) as well as 143(2) make it clear that in course of assessment proceedings, AO did examine both the issues for which assessee s case was selected for scrutiny - in response to query raised by ....... + More
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2021 (10) TMI 1399
Rectification of mistake u/s 254 - Incorrect and incomplete recording of the fact that the responsibility for installation and commissioning alongwith supply of equipment is with the appellant/applicant - HELD THAT:- The issue has been decided by this Tribunal [ 2020 (12) TMI 857 - ITAT DELHI] wherein the Tribunal has taken a view that the dominant purpose of the appellant/applicant is not to sell telecommunication equipment but to commission it after due customisation of hardware and software in accordance with the requirement of telecommunic....... + More
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2021 (10) TMI 1396
Assessment u/s 153A - necessity of valid approval u/s 153D - HELD THAT:- As in cases Navin Jain Others [ 2021 (9) TMI 1068 - ITAT LUCKNOW] and SHRI NARESH KUMAR JAIN [ 2021 (9) TMI 1080 - ITAT LUCKNOW] has been followed, the Tribunal has held to the effect that granting of a mechanical approval u/s 153D of the Act vitiates the entire proceedings. It is on this basis that the issue was decided in favour of the assessee in both these cases, under facts and circumstances exactly similar to those present herein. Respectfully following the view tak....... + More
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2021 (10) TMI 1395
TP Adjustment - rate the interest-free loans granted by the assessee to its associated enterprise in Mauritius should be benchmarked as at an arm s length - HELD THAT:- This issue is no longer res integra. The issue in the appeal is squarely covered, in favour of the assessee, by a coordinate bench decision in assessee s own case for the assessment years 2009-10 and 2010-11 [ 2019 (6) TMI 1691 - ITAT MUMBAI] It is indeed disappointing that even after taking note of the above fidnings of the coordinate bench, the authorioties below have justifi....... + More
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2021 (10) TMI 1392
TP Adjustment - Comparable selection - HELD THAT:- Assessee is engaged in providing Business support services, thus companies functionally dissimilar with that of assessee need to be deselected. Cedit of advance tax - We restore this issue to the file of AO to examine the claim of the assessee.
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2021 (10) TMI 1391
TP Adjustment - comparable selection - inclusion of E-clerx Services Ltd and TCS E-Serve Ltd. - HELD THAT:- This Tribunal has excluded E-clerx Services Ltd and TCS E-Serve Ltd. from the final set of comparables. Respectfully following the decision of this Tribunal in own case [ 2021 (2) TMI 575 - ITAT DELHI] , we direct the Assessing Officer/TPO to exclude E-clerx Services Ltd and TCS E-Serve Ltd. from the final set of comparables. Ground with its sub grounds is, accordingly, allowed. Addition on account of alleged interest on delay in collect....... + More
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2021 (10) TMI 1389
Royalty receipt - Explanation 2 to section 9(i)(vi) of the Income-tax Act, 1961 and Article 12(3) of the India-USA Double Taxation Avoidance Agreement ( DTAA ) - appellant being a resident of USA is covered by the beneficial provisions of DTAA between India and USA and accordingly, could not be taxed under the provisions of the Act - HELD THAT: - After going through the decisions of the Hon'ble High Court of Delhi in the case of the appellant, we find that the quarrel has now been well settled in favour of the assessee and against the Reve....... + More
