Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
Revenue's appeal before ITAT was dismissed. ITAT upheld CIT(A)'s acceptance of additional evidence under Rule 46A, noting that the material was remanded to the AO and no remand report was furnished despite repeated reminders; thus there was no violation of Rule 46A. On merits, ITAT sustained CIT(A)'s deletion of additions relating to discrepancies in sales turnover, trade payables, and current liabilities, finding that reconciliations, third-party confirmations under s.133(6), and supporting records fully justified the assessee's position. ITAT also affirmed deletion of addition towards exceptional charges/expenses, holding that the assessee had already made a suo motu disallowance under s.37 and any further disallowance would result in double addition.
Revenue's appeal before ITAT was dismissed. ITAT upheld CIT(A)'s acceptance of additional evidence under Rule 46A, noting that the material was remanded to the AO and no remand report was furnished despite repeated reminders; thus there was no violation of Rule 46A. On merits, ITAT sustained CIT(A)'s deletion of additions relating to discrepancies in sales turnover, trade payables, and current liabilities, finding that reconciliations, third-party confirmations under s.133(6), and supporting records fully justified the assessee's position. ITAT also affirmed deletion of addition towards exceptional charges/expenses, holding that the assessee had already made a suo motu disallowance under s.37 and any further disallowance would result in double addition.
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