ITAT Ahmedabad held that the Transactional Net Margin Method (TNMM) remained the most appropriate method as there was no change in the assessee’s functional profile and earlier Tribunal decisions had consistently accepted it. The transfer pricing adjustment based on the internal Cost Plus Method was deleted.
The ITAT held that an opening cash balance cannot be treated as unexplained merely because the previous year’s income tax return reflected nil cash. It deleted the addition after accepting the assessee’s explanation regarding accumulated withdrawals from taxed income.
The ITAT held that the Assessing Officer failed to produce any material establishing a connection between the assessee and the alleged accommodation entry provider. It upheld the deletion of the Section 69A addition for lack of supporting evidence.
The ITAT deleted an addition relating to an NRE account after finding that the credits were linked to overseas salary remittances and lacked evidence of unexplained income. It remanded the larger addition for fresh verification due to inadequate SFT reconciliation.
The newly constructed storage tanks used for storing hazardous raw materials and finished products constituted an integral part of plant and machinery and were eligible for additional depreciation under section 32(1)(iia). Accordingly, the disallowance of ₹91.12 lakh was deleted.
ITAT Ahmedabad held that repayment of the entire loan with TDS-compliant interest payments undermined the allegation that the loans were accommodation entries. The additions towards interest and commission were deleted.
ITAT Ahmedabad held that an arithmetical mistake committed by the assessee’s consultant did not amount to misreporting of income under Section 270A(9). The penalty was cancelled as there was no misrepresentation or suppression of facts.
ITAT Ahmedabad held that the tax authorities failed to consider evidence of an earlier agreement and prior payments before invoking Section 56(2)(x). The addition based on the stamp duty value was deleted.
ITAT Ahmedabad held that cash deposits cannot be treated as unexplained merely because they were made in old denomination notes during demonetisation. The Tribunal remanded the matter to verify whether the deposits represented genuine business sales.
The ITAT held that sales tax subsidy granted under industrial incentive schemes constituted a capital receipt because its purpose was industrial development rather than business profits. The Revenue’s appeal was dismissed and the subsidy was excluded from taxable income and book profits.
