The Tribunal ruled that disallowance of deduction under Section 80P was beyond the permissible scope of prima facie adjustments under Section 143(1). Relief was granted to the assessee.
The ITAT dismissed the appeal after a rectification order under Section 154 granted the deduction under Section 80P and corrected the assessed income. The dispute no longer survived for adjudication.
The ITAT held that deduction under Section 80P could not be disallowed through a unilateral adjustment under Section 143(1) without providing notice and an opportunity of hearing. The appeals were allowed.
Mumbai ITAT held that once receipts reflected in Form 26AS are assessed as taxable income, corresponding TDS credit cannot be denied on technical grounds. The AO was directed to verify records and grant due credit.
Tribunal directed inclusion of Cyber Media Research Limited after finding that market research and consultancy services were comparable to the assessee’s support service activities. Earlier Tribunal rulings supporting comparability were followed.
The Tribunal noted that an adjustment under Section 35(1)(iv), already dropped during CPC processing, was later included in assessment computation without fresh notice to the assessee.
Mumbai ITAT held that disallowance under Section 40(a)(ia) cannot be made where expenditure remains part of work-in-progress and is not claimed in the profit and loss account. The Tribunal upheld adjustment of WIP instead of direct addition to income.
The Tribunal held that accounting treatment in the Profit and Loss Account does not determine taxability of a receipt. Principal loan waiver remained non-taxable despite being shown as extraordinary income in accounts.
Mumbai ITAT held that discounts offered on gift cards and gift vouchers became an actual expenditure when the instruments were sold and could not be treated as contingent liability. The Tribunal allowed the deduction after noting that unutilised amounts were later offered to tax.
For deduction on carbon credits, Section 80-IA deduction on the sale of CERs must be allowed; gains from the prepayment of deferred sales tax constituted capital receipts, meaning Commissioner’s relief required no interference.
