ITAT Ahmedabad allowed Section 10(10B) exemption on BSNL VRS compensation, following coordinate bench rulings despite no claim in the original return.
ITAT held an assessment passed after the taxpayer’s death was invalid in law, quashed the order, and treated all remaining issues as academic.
ITAT held that where sales are accepted, the entire purchase amount cannot be added. The addition was restricted to 8% as the embedded profit element.
ITAT held that filing Form 56G instead of Form 56F was a rectifiable procedural error and directed reconsideration of the Section 10AA claim.
ITAT ruled that personal savings account credits require proof of business nexus before being treated as turnover. The income addition and penalties were deleted.
ITAT deleted additions after finding the AO relied only on ACB information without independent inquiry or supporting evidence. ITAT deleted additions after holding that estimated marriage expenses and FDR investment were unsupported by evidence and explanations remained unchallenged.
ITAT held interest on government grant funds was not taxable as the MOU required it to be added to the project corpus.
The ITAT Ahmedabad held that royalty payments should continue to be benchmarked under TNMM by following earlier decisions in the assessees own case. It found no reason to replace TNMM with CUP where identical facts had already been decided. The Department’s transfer pricing challenge was therefore dismissed.
Tribunal partly allowed the assessee’s appeals by granting relief on transfer pricing, scientific research deduction, product registration expenses, section 14A/MAT adjustment, and forex hedging losses, while upholding the disallowance of expenditure on freebies to doctors and delayed employees’ welfare contributions.
The ITAT Ahmedabad held that no disallowance under Section 14A can be made where the assessee did not earn any exempt income during the relevant assessment year. It upheld the CIT(A)’s order deleting the addition.
