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 allowed the appeal: it reversed the AO's additions and directed deletion of the disallowance under s.69C. The Tribunal found the AO and CIT(A) erred in rejecting bona fide improvement expenditures where the assessee produced original bills, payment evidence and corroborative invoices, despite the assessee's name not appearing on some vouchers; the totality of circumstances supported allowance of the cost of improvement. Likewise, commission/brokerage payments to four payees were held to be genuine and claimed in the recipients' returns and confirmations; mere filing after s.133(6) inquiries or familial relationship did not justify disallowance absent contrary evidence. The AO was directed to allow the claimed deductions for computation of capital gains.
ITAT allowed the appeal: it reversed the AO's additions and directed deletion of the disallowance under s.69C. The Tribunal found the AO and CIT(A) erred in rejecting bona fide improvement expenditures where the assessee produced original bills, payment evidence and corroborative invoices, despite the assessee's name not appearing on some vouchers; the totality of circumstances supported allowance of the cost of improvement. Likewise, commission/brokerage payments to four payees were held to be genuine and claimed in the recipients' returns and confirmations; mere filing after s.133(6) inquiries or familial relationship did not justify disallowance absent contrary evidence. The AO was directed to allow the claimed deductions for computation of capital gains.
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