ITAT
Unabated Assessment Additions/ Disallowances Made In Absence Of Incriminating Material Merits To Be Quashed: New Delhi ITAT
The New Delhi ITAT quashed the unabated assessment additions / disallowances made by AO in the absence of any incriminating material.The Bench of Kul Bharat (Judicial Member) and Pradip Kumar Kedia (Accountant Member) observed that “additions/disallowances have been made without reference to any specific incriminating material/document found as a result of search and seizure action under section 132 of the Act and such additions are solely based on appraisal report against the subscribers of the...
Lapses In Faceless Assessment Regime Should Not Render Prejudice To Effective Administration & Disposal Of Matter: Kolkata ITAT
While emphasizing that in the initial phase of a new technologically driven faceless regime, certain lapses of procedural requirements may occur, the Kolkata ITAT pointed that that such lapses should not lead to rendering prejudice to effective administration and disposal of the matter.The Bench of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “lapses cannot be attributed to any wilful default on either party owing to nascent stage of the faceless regime...
CIT(A) Accepted Stereo-Typed Defences On Behalf Of Taxpayer In Perfunctory Manner Sans Any Preliminary Inquiry: Delhi ITAT Remits Matter
Finding that both the AO and the CIT(A) have failed to discharge their quasi-judicial duties in a just and proper manner, the Delhi ITAT observed that the CIT(A) has passed a non-descript and cryptic order without dealing with the fundamental aspects of the matter.Explaining that proper examination of all materials are incumbent in law, the ITAT highlighted that the CIT(A) ought to have made suitable inquiries on the propriety of the expenses claimed in question in the light of the documentary...
No Addition Warranted U/s 68 Once Taxpayer Has Discharged Identity & Credit-Worthiness Of Subscribers: Kolkata ITAT
The Kolkata ITAT reiterated that once the assessee has submitted the documents relating to identity, genuineness of the transaction, and credit-worthiness of the subscribers, then the AO is duty bound conduct to conduct an independent enquiry to verify the same.The Bench of Sanjay Garg (Judicial Member) and Manish Borad (Accountant Member) observed that “the assessee has successfully explained the nature and source of alleged sum and even the source of source has been proved by providing details...
No Penalty Is Leviable U/s 271(1)(C) If Bona Fide Mistake In Original Return Was Corrected By Revised Computation During Assessment: Mumbai ITAT
On finding that assessee had made bona fide mistakes in the computation of its total income while filing its original return, which were later corrected by filing revised computation during assessment proceedings, the Mumbai ITAT deleted the penalty levied u/s 271(1)(c) of the Income Tax Act.The Bench of the ITAT comprising of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) observed that, “the fact that the donation given was stated in the Tax Audit Report and...
No ALP On AMP Expense Is Warranted In Absence Of Agreement Between Assessee And Its AE For Service W.r.t Brand Promotion Activity: Chennai ITAT
The Chennai ITAT deleted the ALP adjustment made towards advertisement expenses (AMP expenses) for alleged brand enhancement for its AE by assessee manufacturing and selling cars in India as well as exporting them to its AEs and non-AEs abroad.The Bench comprising Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) on identical issue, noted that the Coordinate bench in assessee's own cases for AYs 2012-13 and 2016-17 deleted the adjustment holding that there was no formal...
Segregation Of Contract Manufacturing Activity And Distribution Is Fair And Reasonable: Mumbai ITAT
The Mumbai ITAT rejected the assessee's own recharacterization as value added distributor (VAD) and upheld the CUP method to benchmark import of Active Pharmaceutical Ingredients (APIs).The Bench comprising Vikas Awasthy (Judicial Member) and Gagan Goyal (Accountant Member) observed that “segregation of Contract Manufacturing activity and Distribution is fair and reasonable. Merely for the reason that the assessee committed error in TP study to merge the two distinct segments under one head...
Depreciation Should Be Removed For Calculation Of Net Profit Margin And Cash PLI Is Justified Method: Kolkata ITAT
The Kolkata ITAT recently decided on comparables selection and adoption of Cash PLI in case of entity engaged in production of continuously annealed, cold-rolled steel / coils and sheets for automotive sector.The Bench comprising Dr. Manish Borad (Accountant Member) and Anikesh Banerjee (Judicial Member) observed that “The assessee stated that considering depreciation as a part of the total cost would not be appropriate for the purpose of benchmarking since the depreciation in the year under...
Time Barred Reference By AO To TPO By Giving Go Bye To Mandate Of Sec 92CA Is Clearly Erroneous: Mumbai ITAT Upholds Revision U/s 263
Finding that the AO had received the approval from the office of CIT well before the last date for passing of the TP order, but went in slumber and held on to himself the approval from CIT for more than six months, the Mumbai ITAT ruled that the reference made by Assessing Officer to the TPO was clearly time barred and invalid.The ITAT therefore upheld the CIT's invoking revisional jurisdiction u/s 263 in case of assessee for AY 2018-19. The Bench comprising Vikas Awasthy (Judicial Member) and...
Kolkata ITAT Directs TPO To Follow DRP's Directions With Respect To Aggregation Approach
The Kolkata ITAT remitted the case of ALP adjustment qua payment of Cylinder Rental Charges and import of Fixed Assets in case of assessee (engaged in manufacture, storage, and transmission of industrial gases as well as execution of turnkey cryogenic/gas engineering and project design requirements) for AY 2012-13.The Bench comprising Dr. Manish Borad (Accountant Member) and Mr. Anikesh Banerjee (Judicial Member) observed that “TPO should follow the direction of DRP and the issue of purchase of...
Delhi ITAT Deletes ALP Adjustment Qua Interest On Loan To AEs, Considering Tenure & Commercial Prudence
The Delhi ITAT deleted the ALP adjustment made on account of interest on loan extended to AE by assessee, engaged in manufacturing of Seamless, ERW Pipes and Tubes, and trading of Pipes and Tube.The Bench comprising Saktijit Dey (Vice President) and Dr. B.R.R. Kumar (Accountant Member) observed that “With regard to the guarantee in the agreement between Citibank, Singapore and JPSPL, it was submitted that JPSPL has obtained loan from Citibank, Singapore of around USD 2,90,00,000/-. No bank would...
Date Of Agreement Can't Be Construed As Date Of Sale Of Shares, For Purpose Of Computation Of Capital Gains: Mumbai ITAT
The Mumbai ITAT ruled that the date of the agreement by no stretch of imagination could be the date of sale of the shares by the assessee to the purchaser, for purpose of computation of capital gains.The Bench of Prashant Maharishi (Accountant Member) and Kavitha Rajagopal (Judicial Member) observed that “As per the decision of Bharti Gupta Ramola v. CIT [2012] 20 taxmann.com 762 the date of transfer is 30.06.2006 for computing the holding period of assets from both the date, i.e., of...