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...
ITAT allowed the assessee's appeal. Additions on account of cash and jewellery seized during search were quashed as the assets were not found at premises of the AOP or its members and the consortium itself was not a legal entity. Additions for alleged bogus purchases from three suppliers were deleted, the Tribunal holding that payments were routed through banking channels, recognized in an arbitral award, and advances written off due to delay could not be treated as non-genuine. Disallowance of expenses was also set aside since payments were by cheque with TDS and duly accounted in the AOP's financials. The TP adjustment, based on an improper application of CUP without comparables and contrary to earlier directions, was held unsustainable and the corresponding addition was set aside.
ITAT allowed the assessee's appeal. Additions on account of cash and jewellery seized during search were quashed as the assets were not found at premises of the AOP or its members and the consortium itself was not a legal entity. Additions for alleged bogus purchases from three suppliers were deleted, the Tribunal holding that payments were routed through banking channels, recognized in an arbitral award, and advances written off due to delay could not be treated as non-genuine. Disallowance of expenses was also set aside since payments were by cheque with TDS and duly accounted in the AOP's financials. The TP adjustment, based on an improper application of CUP without comparables and contrary to earlier directions, was held unsustainable and the corresponding addition was set aside.
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