Tribunal holds that selling goods below cost does not create marketing intangibles and cannot be capitalised as brand-building expenditure. ESOP reimbursements are reaffirmed as allowable business expenses without TDS.
Incorrect Form 3CD reporting led CPC to treat rental income and capital gains as business income. The Tribunal ruled that such mismatches cannot justify additions without verification.
The Tribunal ruled that interest from co-operative bank deposits is attributable to business activity and eligible for deduction under Section 80P(2)(a)(i). The disallowance of ₹8.98 lakh was ordered to be deleted.
ITAT restored the matter to the Assessing Officer since the assessee’s application for delayed 12A registration and condonation under Section 119(2)(b) was still undecided. The ruling underscores that exemption eligibility must be re-examined only after the competent authority disposes of the registration request.
The Tribunal held that section 54 relief cannot be denied merely because the new property was purchased in the spouse’s name. It ruled that actual investment of capital gains is the key requirement.
Because differing judicial views existed on taxation of co-operative society interest income, the AO’s accepted position could not be termed erroneous. The Tribunal ruled that debatable issues cannot trigger section 263 revision.
The Tribunal allowed sales commission payments to family members engaged in company operations, deleting disallowances. The ruling emphasizes that commission need not be tied to individual sales but to services rendered. It sets a precedent for assessing commission to related parties in business operations.
The Tribunal found the Final Assessment Order invalid as it was issued before the 30-day objection period under Section 144C expired. This violated the assessee’s procedural rights. All transfer pricing adjustments and tax demands linked to the order were deleted, partly allowing the appeal.
The Tribunal dismissed the appeal against disallowance of cash payments in a film production and real estate business. Since the assessee voluntarily offered 20% initially and later 80% of cash expenses as income, the additions were valid. The ruling emphasizes that self-conceded income cannot be contested in later appeals.
The Tribunal condoned a 345-day delay after finding the assessee’s claim of non-receipt of orders plausible. It noted that the AO never sought details for the disputed disallowances and CIT(A) failed to examine documents properly. The matter was remitted for fresh verification, ensuring fair opportunity.
