Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
ITAT dismissed Revenue's appeal and upheld the CIT(A)'s deletions. The Tribunal followed a co-ordinate bench's decision in the assessee's own case for a prior year and declined to disturb the deletion of additions attributable to a purported bogus unsecured loan and any commission allegedly paid to procure it. Consequently, Revenue's Grounds 1 and 2 were dismissed. With respect to additions under section 41(1), the Tribunal accepted the assessee's retraction of the survey statement, found that the field enquiry did not comply with mandated procedural safeguards and lacked independent corroboration, and directed the AO to delete the entire section 41(1) addition. The appeals were thereby decided in favour of the assessee.
ITAT dismissed Revenue's appeal and upheld the CIT(A)'s deletions. The Tribunal followed a co-ordinate bench's decision in the assessee's own case for a prior year and declined to disturb the deletion of additions attributable to a purported bogus unsecured loan and any commission allegedly paid to procure it. Consequently, Revenue's Grounds 1 and 2 were dismissed. With respect to additions under section 41(1), the Tribunal accepted the assessee's retraction of the survey statement, found that the field enquiry did not comply with mandated procedural safeguards and lacked independent corroboration, and directed the AO to delete the entire section 41(1) addition. The appeals were thereby decided in favour of the assessee.
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