ITAT Half Yearly Digest: January To June 2024 - PART II
Mariya Paliwala
10 July 2024 9:10 PM IST
Failure To Produce Share Certificate Is No Basis To Doubt Share Purchase Transaction: Mumbai ITAT Refers Art 265 Of ConstitutionCase Title: Shantaben Fathechand Mehta verses Income-tax Officer Referring to Article 265 of the Constitution of India, the Mumbai ITAT remanded the case to the file of AO with direction to verify factual aspects, pertaining to the purchase of the shares in...
Case Title: Shantaben Fathechand Mehta verses Income-tax Officer
Referring to Article 265 of the Constitution of India, the Mumbai ITAT remanded the case to the file of AO with direction to verify factual aspects, pertaining to the purchase of the shares in consideration and re-compute the liability accordingly.
Case Title: Shripal Sheshmal Jain HUF verses Income Tax Officer
On finding that AO as well as the CIT(A) was not right in making/confirming the addition on account of unaccounted business income, the Ahmedabad ITAT deleted the addition made by AO under the Income Tax Act, 1961.
Case Title: DCIT verses M/s Claris Lifesciences Limited
The Ahmedabad ITAT ruled that when the period of holding of the plant and machinery is more than 36 months, then the same has to be treated as long-term capital asset in pursuant to the provisions of section 2(42A) of the Income tax Act.
Case Title: Apeejay Surrendra Management Services Pvt Ltd. verses DCIT
Since the income accrues or arises or is deemed to accrue or arise in the hands of KSWPL and not in the hands of the assessee, the Kolkata ITAT held that by invoking second limb of section 2(22)(e) of the Income tax Act, accrual of income and its taxability cannot be held to be in the hands of the assessee.
Case Title: Soham Buildcon verses PCIT
On finding that there is no prejudice against the Revenue and the twin conditions to exercise the power u/s 263 of the Income Tax Act, 1961 have not been satisfied, the Ahmedabad ITAT set aside the order of PCIT to assess the assessee's case freshly.
Case Title: Aniljit Singh Arora verses DCIT
Finding that the nature and source of unaccounted investment in the hospital building is arising out of assessee's professional receipts, the Chandigarh ITAT ruled that there was no justifiable basis on the part of the AO in applying the provisions of Section 69 r/w Section 115BBE of the Income tax Act to the surrendered business income of the assessee which has been duly offered in the return of income.
Case Title: Sri Arijit Chakraborty verses ITO
Upon not finding justification on the part of the Income Tax Authorities in computing the capital gains by adopting the sale value as per the value estimated by the Departmental Valuation Officer, theKolkata ITAT deleted the addition made by the AO in respect of capital gains by adopting the value of the property as per the DVO report.
Case Title: Aryavrat Vintrade Pvt Ltd verses ITO
Since the AO as well as the CIT(A) has not examined the issue with the angle of section 69, rather they took the conditions of section 68 where unexplained cash credit is required to be explained by the assessee and applied on the issue of investment, the Kolkata ITAT remanded the matter for re-adjudication.
Case Title: Bisharpara Kodalia Cooperative Credit Society Ltd. verses ITO
The Kolkata ITAT ruled that section 80AC of the Income tax Act puts a bar against claiming of deduction in respect of certain income provided under the head (C) of Chapter VIA which includes section 80P of the Act also if the return of income are not filed before the due date prescribed u/s. 139(1) of the Act.
Case Title: DCIT verses Continental Corrugators Pvt. Ltd.
Finding that the book value of assets and liabilities adopted for the purposes of NAV method of valuation is in consonance with last audited balance-sheet items, the Delhi ITAT clarified that the AO has misdirected himself on seeking valuation report which requirement do not emanate from the law codified in this regard.
Case Title: Debarghya Chattopadhaya verses DCIT
Finding that the Appellant/ Assessee has valid Tax Residency Certificate (TRC) for United Kingdom, the Kolkata ITATreiterated that the salary income received by assessee for his work during stay at United Kingdom is exempt from tax on account of treaty benefit.
Case Title: ITO verses Surender Dalal
On finding that the requirement of application of mind is missing in the instant case, the Delhi ITATheld that the reassessment made in the section 143(3) read with section 147 of the Income Tax Act, 1961, is bad in law and hence, the re-assessment order is quashed.
Case Title: Babubhai Ramanbhai Patel verses Deputy CIT
The Ahmedabad ITAT emphasized that as per Section 250 of the Income tax Act, it is incumbent on the CIT(A) to make necessary enquiry before passing the order and he is obliged to decide each of the points arising out of the appeal i.e. grounds on merits have to be discussed even in an ex-parte order.
Case Title: M/s B Narayan Associates verses CIT
Referring to the decision of Bombay High Court in the case of Principal CIT vs Mohammed Haji Adam & Co (Income Tax Appeal No.1004 of 2016 dated 11/02/2019), the Mumbai ITAT reiterated that the additions should be limited to the extent of the G.P. rate on purchases at the same rate of other genuine purchases.
Case Title: ACIT verses Dhruv Milkose Pvt. Ltd.
Recently, the Delhi ITAT reiterated that object of deeming an unjustified premium charged on issue of share as taxable income u/s 56(2)(viib) of the Income tax Act is wholly inapplicable for transactions between holding and its subsidiary company where no income can be said to accrue to the ultimate beneficiary, i.e., holding company.
Case Title: Asha Modern Educational Society vs ITO
The New Delhi ITAT emphasized that the Revenue Authorities have to tax the right person in right manner and shall not disallow the eligible deductions on mere technicalities.
Income Tax Exemptions Available To ST Individuals Can't Be Extended To Partnership Firm: ITAT
Case Title: M/s Hotel Centre Point, Shillong Versus ITO
The Guwahati Bench of the Income Tax Appellate Tribunal (ITAT) has held that the exemption under Section 10(26) of the Income Tax Act has been specifically conferred on members of the Scheduled Tribe residing in the specified area. The exemption cannot be extended to another separate and distinct "person," that is, the partnership firm, though such a firm consists of the individual partners who, in their individual capacities, are entitled to such an exemption.
LTCG Tax Exemption Can't Be Denied Due To An Error Made By The Builder In Assigning Apartment: ITAT
Case Title: Mukesh Harilal Mehta Versus Income Tax Officer
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that tax benefits cannot be denied to taxpayers due to an error made by the builder in assigning the apartment.
CIT(A) Not Empowered To Dismiss An Appeal On Account Of Non-Prosecution: ITAT
Case Title: MARC Laboratories Ltd. Versus Deputy Commissioner of Income Tax
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the CIT(A) has no power to dismiss an appeal on account of non-prosecution.
Contribution Made By NSE To Core SGF Is Not In The Nature Of Any Deposit/Contingency/Reserve: ITAT
Case Title: National Stock Exchange of India Versus DCIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the contribution made by the assessee stock exchange to Core SGF is not in the nature of any deposit, contingency, or reserve.
Case Title: Jatin Enterprises Versus ACIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has quashed a pre-drafted penalty notice containing both concealed particulars of income and furnished inaccurate particulars of income.
Payments Made To Doctors Would Be Covered By TDS Provisions U/S 194J Of Income Tax Act: ITAT
Case Title: ACIT verses Artemis Medicares Services Ltd.
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) consisting of M. Balaganesh (Accountant Member) and Anubhav Sharma (Judicial Member) has held that the payments made to doctors would be covered by TDS provisions under Section 194J and not Section 192 of the Income Tax Act.
Case Title: Google Ireland Ltd verses DCIT
Following the Coordinate Bench ruling in IT(IT)A No.2845/Bang/2017, wherein it was held that the payment made by Google India to assessee was not in the nature of royalty/ FTS and consequently it could not be brought to tax in the hands of assessee, the Bangalore ITAT ruled that amount received by Google Ireland (Assessee) from Google India towards marketing & distribution rights of AdWords program is not royalty.
Case Title: Late Smt. Nirmala Venkatapathy verses ITO
Finding that value determined by the DVO is less than the valuation adopted by assessee for computing fair market value (FMV), the Chennai ITAT ruled that the value adopted by the DVO cannot be taken for computing FMV.
Case Title: Mehsana Urban Co-op. Bank Ltd. verses ACIT
The Ahmedabad ITAT ruled that mathematical incorrectness by AO cannot be said to be failure on the part of the assessee to disclose any material fact, so as to initiate reopening of assessment.
Case Title: Mihir Parikh verses ACIT
The New Delhi ITAT recently reiterated that once insurance policy is assigned by the employer to employee, the insurance policy gets converted into an ordinary policy, and in that case, the value received by employee would not be subjected to tax in view of section 10(10D) of the Act.
Case Details: Mukesh Trends Lifestyle Limited verses Dy CIT
Relying on the decision of the Jurisdictional High Court in the case of PCIT vs. Asian Mills (P.) Ltd., the Ahmedabad ITAT that vehicle exclusively used by an entity for its commercial purpose becomes eligible for claim of depreciation.
Case Title: Manuj Jain HUF verses Pr. CIT
Finding that the assessee has carried out seasonal trade in hosiery items duly supported by documentary evidence, which was duly examined by the AO accepting the said transactions and resultant profit has been brought to tax, the Chandigarh ITAT held that the PCIT cannot be permitted to invoke his jurisdiction u/s 263 merely because he believes that there is certain deficiency in the documentation so maintained and furnished by the assessee.
ITAT Restores Matter Back To AO To Verify ICSI's Income Tax Exemption Claim
Case Title: The Institute of Company Secretaries of India Versus DCIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has restored the matter back to the AO to verify the Institute of Company Secretaries of India's (ICSI) income tax exemption claim.
Case Title: Zila Parisad verses Addl. CIT, TDS
While relegating the taxpayer to file a revised appeal memo in Form No. 35 either on the e-filing portal of the department or physical form, the Jaipur ITAT restored the matter back to the file of the CIT(A) to adjudicate the matter of rectification application for removal of deficiency, afresh, as per law.
Case Title: Kishorkumar Bhalara verses The Principal Commissioner of Income Tax
On finding that the PCIT has held the assessment order passed by AO as erroneous and prejudicial to the interest of the Revenue simply based on incorrect assumption of facts, the Rajkot ITAT directed to set aside the order passed u/s 263 of the Income tax Act, 1963.
Case Title: Shivam Industries verses ACIT
On finding that the authorities have not considered the history of the assessee and not even rejected its books of accounts, the New Delhi ITAT deleted the addition sustained by the CIT(A) u/s 68 of the Income Tax Act.
Taxpayer Must Substantiate Form 26AS Or Form 16 So As To Claim Credit Over TDS: Mumbai ITAT
Case Title: Shri Ajit Chandrashekar Dighe verses DCIT
While remanding the case back for re-adjudication, the Mumbai ITAT held that the prima facie onus would be upon the Assessee to substantiate its claim of non-granting of TDS credit, by providing relevant documents, such as an appointment letter, salary slips or Form No.16 or bank statements, or any other corroborative evidence/ documents.
Additions U/s 69 Should Not Be Based Merely On Obtaining Surrender Statements: Chandigarh ITAT
Case Title: Shri Jaspreet Singh Mauj verses DCIT/ACIT
On finding that the assessee in clear terms has surrendered the additional professional income covering the expenditure incurred on the building, the Chandigarh ITAT held that the invocation of Section 115BBE of the Income Tax Act, is not applicable and hence deleted the addition made by the AO on account of the addition in the value of building u/s 69.
Case Title: Shri Abhishek Singh verses Pr. CIT
On finding that the assessee has failed to make out a case of reasonable cause much less sufficient cause for an abnormal delay of more than six years in filing the appeal, the Indore ITAT declined to condone the inordinate delay in filing of appeal and consequently dismissed the appeal filed against the revision order passed u/s 263 of Income Tax Act, being barred by limitation.
Case Title: Nano Infra Promoters Pvt. Ltd verses ITO
On finding that the addition is based upon conjecture and surmises and not on records which were available before the authorities, the Kolkata ITAT set aside the order passed by the CIT(A) and directed the AO to delete the addition made u/s 68 of the Income Tax Act.
Case Title: Shri Mool Chand Aggarwal verses Asst. CIT
On finding that the CIT(A) has failed to examine the cash book presented by the assessee, the New Delhi ITAT deleted the addition sustained by CIT(A) u/s 69 of the Income Tax Act.
Case Title: ACIT verses MP Warehousing and Logistics Corporation
While setting aside the order of deduction passed u/s 35AD of the Income Tax Act in relation to investment on warehouse, the Indore ITAT has remitted back the issue to the AO for proper verification and consideration of the bifurcated details of income from specified and non-specified business after finding that such bifurcation of income was not presented earlier before the AO.
Case Title: Satbir Mahato verses PCIT
While quashing the invalid exercise of jurisdiction by PCIT u/s 263 of the Income Tax Act, without satisfying the conditions precedent for such section, the Kolkata ITAT held that the PCIT cannot invoke the jurisdiction u/s 263 to substitute his view in place of AO on the ground that he does not agree with the view taken by the AO.
Case Title: Mohd Shahid Mohd Yusuf Qureshi verses Dy. Commissioner of Income-tax
On finding that the order passed by the Commissioner is an ex-parte order which resulted into denial of proper opportunity of being heard, the Mumbai ITAT set aside the order passed u/s 144 of the Income Tax Act, and remanded the case back to the file of the Commissioner for decision afresh.
Case Title: Mohammad Ibraheem Khatri verses ITO
While deleting the addition made by the AO u/s 68 of the Income Tax Act, the Indore ITAT held that once the cash sales and availability of the cash with the assessee is duly supported by the books of account of the assessee, then making deposit at one go in the circumstances after declaration of demonetization cannot be a reason for doubting the availability of cash with the assessee.
Case Title: Manjunath Obaiah verses The Assistant Commissioner of Income Tax
On finding that a vague order has been passed by the AO by reshuffling the addition under different heads of income and without discussing the issue under the provision of section 154(3) of the Income Tax Act, the Bangalore ITAT remitted back the issue to the file of the AO for fresh consideration.
Case Title: Naresh Chandra Kalwani verses Pr. Commissioner of Income-tax
On finding that the facts of the case do not warrant application of section 263 of the Income Tax Act, the Indore ITAT set aside the revision order passed by PCIT and restored the original assessment-order passed by the AO.
Case Title: Shri Bharat Jaroli verses Pr. CIT
On finding a lack of inquiry on the part of AO in allowing cash sales, which renders the assessment order erroneous so far as it is prejudicial to the interests of revenue, the Indore ITAT upheld the order of disallowance u/s 40A(3) of the Income Tax Act, passed by Pr. CIT by invoking Section 263.
Case Title: Shri Ketan Prabhulal Dalsaniya verses The DCIT
While accepting on one hand that the income found to be belonging to taxpayer's wife in scrutiny assessment was duly offered to tax, the Rajkot ITAT reprimanded the I-T Department from taking a contrary view and taxing it in the hands of the taxpayer on the ground that his wife was not actually carrying out any business.
Case Title: Hyfun Frozen Foods Pvt. Ltd. Verses Income Tax Officer
The Ahmedabad ITAT recently ruled that actual expenditure, the source of which has not been explained, attracted the deeming provisions provided u/s 69 of the Income tax Act.
Case Title: Shri Ramajayam Charitable Trust verses Income Tax Officer
The Chennai ITAT recently clarified that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A has been extended, the same may be treated as extended for Form No.10AB for renewal of approval/recognition/registration under clause (iii) of the first proviso to section 80G of the Income Tax Act.
Finding that assessee in the present case is not a cooperative bank, since the office of Central registrar of cooperative societies, New Delhi has issued a certificate of registration to the assessee registering it u/s 11 of Multistate Cooperative Societies Act, 2002, the Mumbai ITAT ruled that the income earned by a co-operative society by way of interest derived by from its investment with any other cooperative society, is deductible u/s 80P.
Case Title: Jankalyan Vinimay Pvt. Ltd. verses Deputy Commissioner of Income Tax
Finding that the returns of the assessee have been processed in the Computer Processing Centre, the Kolkata ITAT ruled that if the Auditors have reported in the Audit Report that employees' contribution have been deducted by the assessee from the salaries of the employees but not deposited within due date provided under PF&ESI Act then no deduction can be claimed by assessee.
Case Title: Income-tax Officer verses Design Deal Fashions Pvt. Ltd.
The Mumbai ITAT upheld the order of CIT(A) in deleting the addition made by the AO u/s 68 of the Income Tax Act, since the assessee has successfully established the genuineness and creditworthiness of the share subscribers alleged for the bogus transactions.
Case Title: Dinesh Shah (HUF) verses Dy. CIT
While quashing the proceedings initiated u/s 153C of the Income Tax Act based on the material impounded in course of survey action, the Mumbai ITAT clarified that the material considered for initiating action u/s 153C in the case of assessee was not seized in the course of search action but was impounded in the course of the survey action, and hence assessment u/s 153C is not as per provisions of law.
Case Title: Chandresh P. Thakker verses National Faceless Assessment Centre
While deleting the addition made u/s 68 of the Income Tax Act, the Mumbai ITAT directed the assessee to file the details of the services rendered by the commission agents for availing the commission payment from the assessee.
Case Title: Chandarani N. Goyal verses Income Tax Officer
While deleting the enhancement made u/s 56(2)(vii)(a) of the Income Tax Act, the Mumbai ITAT explained that as per the provisions of section 56(2)(vii)(a), any sum of money, the aggregate of which exceeds Rs.50,000, received by an individual without consideration is taxable as income from other sources, and thus, u/s 56(2)(vii)(a), the incidence of taxation is at the stage of receipt of money.
Case Title: ACIT verses Harisons Diamonds Pvt Ltd
The New Delhi ITAT recently clarified that the cash sales already been offered as income, cannot be taxed in the garb of inflation sales to cover up demonetization currency.
Case Title: Bijender Singh Lohia Versus JCIT (OSD)
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the manual cash book contained entries related to cash withdrawals and expenses of the company, which were duly recorded and reconciled with its books of account, as well as cash introduced, withdrawn, and expenses on behalf of the assessee.
Case Title: Enayetpur S K U S Ltd Vs. ACIT
The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) has held that Primary Agricultural Credit Society is entitled to benefit under Section 80P(2)(i) of the Income Tax Act for providing credit facilities for non-agricultural purposes to its members.
Income Tax Addition Can't Be Deleted For Sole Reason Of Erroneously Mentioning Section: ITAT
Case Title: Jignesh Chimanlal Jobanputra Versus ITO
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the addition cannot be deleted for the sole reason that the section under which the addition is made is mentioned erroneously and that it is necessary to look into the merits of the case.
Case Title: M/s. KDDI Corporation Versus The Deputy Commissioner of Income Tax (International Taxation)
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received by the assessee towards interconnectivity utility charges from Indian customers or end users cannot be considered royalties to be brought to tax in India.
Case Title: Mack Star Marketing Private Limited Versus National Faceless Appeal Centre
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT), while deleting the notional rent addition for AY 2014–15, held that taxing unsold flats in real estate business is applicable from AY 2018–19.
Case Title: Mohd. Sarwar Versus The Income Tax Officer
The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the penalty order on the ground of misreporting of income was not justified when show cause notice and the assessment order alleged under-reporting.
Case Title: Lalwani Estates & Realtors Pvt Ltd. Verses Income Tax Officer
On finding that the assessee has issued share application money and subsequently allotted shares which shows that the transactions are genuine and there is no material brought on record by tax authorities that the assessee has benefited from round-tripping, the Mumbai ITAT deleted the addition made u/s 68 of the Income Tax Act, 1961.
Case Title: Mahesh Gurram verses Income Tax Officer
On finding that the assessee had neither substantiated his case before the Tribunal or before the CIT(A), theVisakhapatnam ITAT rejected the condonation and dismissed the appeal filed by the assessee in-limine.
Case Title: M S Hostel verses Deputy Commissioner of Income Tax
On finding that none of the orders passed by I-T Authorities doubted the services so rendered by the administrative head nor alleged to have been paid salary excessive or unreasonable which is sine qua non in invoking the provision of Section 40A(2)(b) of the Income Tax Act, the Ahmedabad ITATallowed the deduction u/s 40A(2)(b).
Case Title: Dion Global Solutions Limited verses ACIT
While holding that mere disallowance of expenditure or enhancement of returned income does not ipso facto call for the imposition of penalty u/s 271(1)(c) of Income Tax Act, the Delhi ITAT deleted the said penalty.
Case Title: Mandava Foundation verses Income Tax Officer
On finding that it is proper to condone the mistake committed by the assessee while applying for registration in Form 10AB instead of Form 10A of the Income Tax Act, the Hyderabad ITAT directed the CIT(E) to hear and dispose of the request of the assessee by allowing it to apply under Form 10A.
Case Title: Maruti Enterprise verses ADIT
The Rajkot ITAT held that the claim of the assessee cannot be denied as it was not reported in the tax audit report, especially in the circumstances where other evidence is available on record suggesting the deduction in pursuance to the provisions of section 43B on payment basis is available.
Case Title: Phillip Koshy verses DCIT
While allowing deduction u/s 54 of the Income tax Act, the New Delhi ITAT explained that under the light of section 54, exemption of capital gain from being charged to income tax as income of the previous year is attracted when another residential house has been purchased within one year before or two years after the date of transfer or has been constructed within three years after the date of transfer of the residential house.
No Adhoc Disallowance Is Permitted Without Rejecting Books Of Account: Mumbai ITAT
Case Title: ACIT verses Merchant Agri Global Private Limited
On finding that the AO had audited and still not rejected the books of account, the Mumbai ITAT held that the ad hoc disallowance made by the AO was not justified and needed to be deleted.
Case Title: Our Lady of Hope Church verses CIT (Exemption)
While allowing the appeal challenging the cancellation of provisional registration of the applicant trust u/s 12AB of the Income Tax Act, the Pune ITAT set aside the order of CIT(E) and remanded the matter back to specifically examine the genuineness of the charitable activities performed by the trust as per his satisfaction.
Case Title: Murtuza Abdul Gaffar Khan verses National Faceless Appeal Centre
While deleting the addition made u/s 68 of the Income Tax Act, the Mumbai ITAT held that in the absence of any dispute and discrepancy in the sales, the addition should be restricted to the extent of gross profit at the same rate of the genuine purchases.
Case Title: Lalita Troy Caeiro verses ITO
On finding that the reopening of the assessment is beyond the time limit provided under the proviso to Section 147 of the Income Tax Act, the Mumbai ITAT quashed the order of disallowance passed by the AO for disallowing the interest paid for acquisition of the property from computation of short-term capital gain.
Case Title: Smt. Kusum Mittal verses DCIT
While rejecting the appeal challenging the validity of notice issued u/s 153A, the New Delhi ITATheld that section 292CC of the Income Tax Act empowers an officer to presume that the books of account or other document found during search u/s 132 or survey u/s 133A belongs to a person upon whom search or survey has been done.
Case Title: Kundal Raghubir Bhandari verses ITO (Intl. Tax)
Finding that the AO has completely relied on the statement of third party without giving opportunity to the assessee to prove its point of view, which is against natural justice, the Mumbai ITAT held that such assessment order to be bad in law which was made purely on the basis of assumption and unverified statement of the third party.
Case Title: M/s. KSJ Infrastructure Pvt. Ltd. Verses DCIT
The Chennai ITAT held that since the notice issued by AO for subject assessment year falls beyond the stipulated six assessment years and four relevant assessment years, considering the satisfaction note, the notice issued by AO u/s 153C of Income tax Act for initiation of proceeding against assessee and consequent assessment order passed u/s.143(3) r/w/s 153C is barred by limitation, void ab initio and liable to be quashed.
Case Title: Kishore Bhagwandas Ramnani verses ITO
Since the AO did not consider that assessee has incurred expenses as per the terms & conditions of the agreement, theMumbai ITAT directed the AO to allow the claim of the assessee to treat Form No. 35A as filed after verification of the copy of agreement and copy of bank statement filed by the assessee.
Case Title: Konathala Nooku Naidu verses ITO
Finding that the assessee has properly explained the source of cash deposit, the Visakhapatnam ITAT directed the AO to delete the addition made u/s 69A of the Income Tax Act.
Case Title: Kanjula Rajagopal Reddy Firm verses ITO
On finding that there is no short fall of TDS and the assessee is eligible to get credit of the entire amount, theVisakhapatnam ITAT directed the AO to grant credit of the entire amount deducted as tax at source u/s. 194Q of the Income Tax Act.
Case Title: Asian Paints Ltd Versus Asstt. Commissioner of Income Tax
The Mumbai ITAT recently ruled on selection of comparable and transfer pricing adjustment on account of non-recovery of charges for providing letter of comfort/support and royalty in case of company engaged in manufacturing paints and enamels.
Case Title: Asian Paints Ltd Versus Asstt. Commissioner of Income Tax
The Mumbai ITAT confirmed the CIT(A)'s action in deleting the addition made on account of waiver of royalty received from two subsidiaries.
Case Title: ACIT verses Kesar Terminals and Infrastructure Ltd.
While referring to the decision of Chennai Bench of Tribunal in the case of M/s. Shriram Properties Limited (ITA No. 431/Chny/2022), the Mumbai ITAT held that the notional interest income credited by the assessee to the profit and loss account as per the requirement of Indian Accounting Standard has not actually accrued to the assessee and hence the same is not liable for taxation under Real Income principle.
Case Title: Bank of Nova Scotia verses DCIT
The Mumbai ITAT rules on TP-adjustments w.r.t administrative support services in relation to interbank indemnities, provision of IT-enabled services, and purchase of precious metals in case of company carrying out banking activities.
Case Title: Atul Limited verses DCIT
The Ahmedabad ITAT remitted the issue of granting business volume discount adjustment and geographical difference adjustment for determination of ALP in case of company engaged in the business of manufacturing chemicals like dyes, agro chemicals, bulk drugs, commodity chemicals and intermediates.
Ahmedabad ITAT Explains Difference Between Letter Of Credit From Corporate Guarantee
Case Title: Axis Bank Limited verses ACIT
While upholding ALP adjustment on LOC in case of Axis Bank, the Ahmedabad ITAT rules on difference between letter of comfort (LOC) and guarantee commission.
Case Title: Shri. Palanisamy Senthil kumar verses ITO
The Chennai ITAT explained that a typographical error in mentioning incorrect amount of expenses in Form 3CD does not call for any addition by the Assessing Officer to assessee's income.
Case Title: Shri. Trimbak Konher Patil verses ITO
The Bangalore ITAT reiterated that the distinction between an employer's contribution which is its primary liability under law, in terms of Section 36(1)(iv), and its liability to deposit amounts received by it or deducted by it is crucial.
Case Title: Shri Vijay Suresh Dave verses DCIT
The Mumbai ITAT clarified that as per the provisions of Section 68 of the Income tax Act, the Assessing Officer is required to make addition of unexplained cash credit only in the previous year in which such cash credit has been made and the assessee is not in a position to offer satisfactory explanation relating thereto.
Case Title: DCIT verses Shri Subramaniam Thanu
The Chennai ITAT clarified that the Assessing Officer has to record his satisfaction before initiating penalty under section 271D of the Income tax Act in respect of violation of the provisions of section 269SS of the Act.
Case Title: Shri Girishbhai Vadilal Shah verses DCIT
The Ahmedabad ITAT held that in the absence of the Assessing Officer pointing out as to how despite the assessee's explanation, there was no nexus between the interest-bearing funds and their utilization for making advances for earning interest income, no disallowance u/s 57(iii) of the Income tax Act was tenable.
Case Title: Shri Ramasubramaniam Sridhar Paul verses ITO
The Chennai ITAT held that there is no requirement that specific money as deposited in capital gain account scheme should be utilized towards new investment, and the assessee may make investment from other funds as available with him and the same would not jeopardize the claim of the assessee.
Case Title: ITO verses Shri Piyushbhai Bhailalbhai Hirpara
Finding that the CIT(A) has deleted the disallowance merely by accepting the contentions of the assessee before it without dealing with the finding of the AO, the Ahmedabad ITAT directed the CIT(A) to consider the arguments of both the sides before him, i.e. the AO and the assessee, and thereafter adjudicate the issue in accordance with law.
Case Title: Shri Charanjit Singh verses ACIT
Finding that except for filing copies of so-called invoices of the contractor through whom the work was done, which were also deficient in several respects, no other evidence was filed by the assessee, the Chandigarh ITAT held that the assessee had failed to discharge the initial burden of proof rested on him to substantiate his claim of having incurred expenditure on improvement of the property.
Case Title: DCIT verses Shri Nilesh Shantilal Tank
Finding that the Settlement Commission has not discarded the evidentiary value of the statement of witness (Rajesh Doshi) who has admitted to the modus operandi of availing bogus purchase bill from the assessee, the Mumbai ITATconfirmed the addition made by I-T Authorities on the gross profit margin @ 12.5% on the alleged bogus purchase by assessee.
Case Title: Shri Krishna Murthy Vuppala verses ITO
Finding merits in the argument of assessee regarding substantiation of cash deposit during demonetization, the Hyderabad ITAT directed the AO to give one final opportunity to the assessee to substantiate with evidence to his satisfaction regarding the nature and source of the cash deposit of Rs.9,79,000/- during the demonetization period.
Case Title: Sengoda Gounder HUF verses DCIT
The Chennai ITAT held that assessee's claim on the fair market value cannot be termed as concealment of income, if such claim was based on the valuation report of an approved valuer.
Case Title: Satyam Print House verses Additional/Joint/Deputy/ Assistant Commissioner of Income Tax, Income Tax Officer, National Faceless Assessment Centre
Noting that neither the Assessing Officer nor the CIT(A) have taken into consideration the explanation offered by the Assessee during the assessment proceedings in relation to the difference in the sale consideration and the stamp duty valuation of immovable property, the Mumbai ITAT deleted the penalty levied u/s 270A of the Income tax Act for under-reporting of income.
Case Title: Satishbhai Kadvabhai Sarvaiya verses ITO
Finding that the assessee has explained the details of the earning of the amount which was rightly deposited during the demonetization period, the Rajkot ITAT held that the addition confirmed by the CIT(A) u/s 69A of the Income tax Act is not justified.
Case Title: Sanjeev Kumar Goyal verses ITO
The New Delhi ITAT held that Section 44AB of the Income tax Act casts an obligation upon the assessee to get accounts audited before the specified date and furnish by that date the report of such audit.
Case Title: Sanganeria Foundations For Health & Education verses CIT (Exemption)
While explaining Section 11(3) of the Income tax Act, the New Delhi ITAT held that any income referred to u/s 11(2) which is paid to any trust/ institution registered u/s 12AA or to any fund/ trust/ university/ educational institution/ hospital referred to u/s 10(23C)(v) shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to be so accumulated or set apart or ceases to remain so invested or deposited or credited or paid, as the case may be, or of the previous year immediately following the expiry of the period aforesaid.
Case Title: Sharda Ferro Works Pvt. Ltd. verses DCIT
Referring to the decision of Bombay High court in the case of PCIT v. Paradise Inland Shipping Pvt Ltd. [2017] 84 taxmann.com 58 (Pan), the Kolkata ITAT deleted the addition made towards share capital and share premium u/s. 68 of the Income tax Act.
Case Title: Computer Modelling Group Ltd. Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.
Case Title: Shree Bipin Biharidas Charitable Foundation verses CIT (Exemption)
Referring to the decision of the Calcutta Bench in ITA No. 994/Kol/2023, the Ahmedabad ITATreiterated that the assessee, who has been granted provisional registration, is eligible to apply for final registration irrespective of the fact that the assessee had already commenced its activity even prior to the date of grant of provisional approval.
Case Title: Shree Jay Limbach Co. Op. Credit Society Ltd. verses ITO
Observing that the assessee was all along, from the beginning since it became aware of some intimation having been made u/s 143(1) of the Income tax Act, seeking rectification in the same, the Ahmedabad ITAT held that rejection of said rectification application as being time barred is not in conformity with law.
Case Title: Kankaria Maninagar Nagarik Sahakari Bank Ltd. Versus Deputy Commissioner of Income Tax
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that loss due to the sale of government securities by banks is a “business loss” and the income tax deduction is allowable under Section 37 of the Income Tax Act.
SBI Not Liable To Deduct TDS On Transactions Related To Assignment Of Loans By NBFC: ITAT
Case Title: State Bank of India Versus DCIT(TDS)
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India (SBI) is not liable to deduct tax at source (TDS) on transactions related to the assignment of loans by non-banking financial companies (NBFC).
Case Title: DCIT Versus J. K. Techno soft Ltd.
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition and held that mark-to-market losses, losses on forward contracts, and losses on forward premium accounts are not speculative in nature.
Case Title: Computer Modelling Group Ltd Vs ACIT
The Delhi ITAT held that receipts by a foreign entity from provision of software services to oil companies in India being in the nature of business profits are not taxable in India in the absence of its Permanent Establishment (PE) during the relevant AYs.
Case Title: Devki Nandan Maheshwari Vs ACIT
The Delhi ITAT deleted the addition made u/s 68 being unsecured loan obtained from a firm by the Assessee for further investment in a company on the ground that the identity, creditworthiness, and genuineness of the transaction stands proved.
Case Title: Conferencecall Services India Pvt. Ltd Vs Dy. Commissioner of Income Tax
The Chennai ITAT recently held that the final assessment order dated Nov 21, 2017 passed after expiry of one month from the end of the month in which the DRP directions were received by the Revenue is barred by limitation and hence, “passed wholly without jurisdiction and therefore, null in the eyes of law”.
Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows Deduction
Case Title: Sunil Amritlal Shah Versus The Income Tax Officer(IT)
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on the purchase of new property.
Receipts From CRM Services Not Taxable In India As Royalty Or FTS: ITAT
Case Title: Salesforce.com Singapore Pte Ltd. Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that receipts from Customer Relationship Management (CRM) services are not taxable in India as royalty or Fee for Technical Services (FTS).
CSR Expenditure Is Mandatory, Does Not Justify Disallowance Of Section 80G Deduction: ITAT
Case Title: Interglobe Technology Quotient Private Limited Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that expenditures under corporate social responsibility (CSR) are mandatory and does not justify disallowance of these expenditures under Section 80G of the Income Tax Act if other conditions of Section 80G are fulfilled.
Case Title: BNP Paribas Vs Assistant Commissioner of Income Tax (IT)
Referring to the provision of Article 12 and 7 of the India-France DTAA which demonstrate that interest payment made by the permanent establishment to the head office are not taxable in the hands of the head office, the Mumbai ITAT held that interest received by the overseas head office (HO) from its Permanent Establishment (PE) is not taxable under beneficial provision of DTAA.
Case Title: Pr. CIT vs. Mahagun Realtors (P.) Ltd.
The Mumbai ITAT held that the rectification order passed in the name of a non-existent entity, despite informing Revenue regarding its merger, is non-est in the eyes of law.
Case Title: ACIT Vs Lx Pantos India Private Limited
The New Delhi ITAT held that no tax is deductible at source u/s 195 on payments made to overseas logistics company for rendition of logistics services, as such services cannot be treated as fees for technical services (FTS) as defined in Explanation 2 to Section 9(1)(vii).
Case Title: Mullanpur Garibdas Co-operative Multipurpose Society Vs The PCIT
The Chandigarh ITAT quashed the revision order u/s 263 holding that application of mind is discernible from examination of the record and that “the power under Section 263 of the Act was exercised on the basis of a mere difference in opinion with the AO, rendering such exercise of revisionary power to be invalid”.
Case Title: ITO verses Mangalvani Commercial Pvt. Ltd.
Noticing that against the alleged credits in the form of share capital & share premium, an equal amount of investment in equity of other entity has been made, the Kolkata ITAT confirmed the addition made u/s 68 of the Income Tax Act.
Case Title: Dream Valley Barter Pvt. Ltd verses ITO
On finding that the CIT(A) has failed to point out any defect and discrepancy in the evidence and details furnished by the assessee but simply upheld the order of the AO in a mechanical manner, theKolkata ITAT held that once the assessee has proved the identity and creditworthiness of the share subscribers, the burden shifts upon the AO to examine the evidence and made independent inquiries.
Case Title: Ambience Private Limited verses ITO
On finding that the assessee has a valid reason to consider the payments on account of 'transactional charges' to be not covered by section 194J(1)(ba) of the Income Tax Act, the New Delhi ITAT ordered to delete the penalty order passed by the CIT(A) u/s 271C.
Case Title: Majhaulia Sugar Industries Pvt. Ltd verses ITO
Finding that the AO has nowhere examined the order of the Pollution Control Board asking the assessee to make the payment, the Kolkata ITAT held that every payment made by the assessee to the Board for violation of environmental norms would not be penal, and hence, deleted the addition made by AO.
Case Title: Purnasons Pvt. Ltd verses ITO
While referring to the provisions of section 80M of the Income Tax Act, that the assessee company would be allowed a deduction of an amount equal to and not exceeding the amount of dividend “distributed” on or before the due date, the Kolkata ITAT held that assessee is rightly within law to claim deduction u/s 80M.
Case Title: Pilani Industrial Corporation Limited verses ACIT
On finding that Department had acted without any evidence to make disallowance u/s 69 r.w.s 115BBE of the Income Tax Act, the New Delhi ITAT held that treating the cash deposit as unexplained cash without rejecting the books of account, is legally not permissible.
Salary Reimbursements Of Seconded Employees Is Not Taxable As Fees For Technical Services: ITAT
Case Title: IBM Canada Limited Versus DCIT
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that salary reimbursements of seconded employees are not taxable as fees for technical services.
Case Title: M/s. Valeo Friction Materials India Ltd. Versus Commissioner of Customs
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.
Case Title: DCIT Versus Paranjapee Schemes Construction Ltd.
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that disallowance has to be worked out on the basis of investment which yielded dividend during the year and not by factoring in the total amount of investment.
Case Title: M/s Esha Securities Pvt Ltd Versus Dy. CIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the computation of six assessment years for search assessments under Section 153C of the Income Tax Act starts from the date of receiving seized documents.
Case Title: Vivek Prahladbhai Patel Versus ITO
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the department as the cash deposits made from the assessee's parents accumulated savings and income from agricultural activities.
Section 80G Deduction Allowable On CSR Expenditure: ITAT
Case Title: M/s. Alubound Dacs India Private Limited Versus Dy. CIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the deduction under Section 80G of the Income Tax Act is allowable on the expenditure in respect of corporate social responsibility (CSR).
Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT
Case Title: ACIT-2(2)(1) Versus Lyka Labs Ltd.
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. 01.04.2003.
Case Title: ACIT Versus Himanshu Garg
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has denied the exemption under Section 54F of the Income Tax Act on the 500-meter shed made on agricultural land that cannot be considered a residential house.
Income From Reselling Of Subscription Based Product Is Royalty: ITAT
Case Title: Gartner Ireland Ltd. Versus DCIT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the income from the reselling of subscription-based products is royalty.
Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT
Case Title: Grey Orange India Pvt. Ltd. Versus ACIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction is allowable on expenditures incurred on warranty claims.
RPM Is Most Appropriate Method To Benchmark Transaction Of Purchase Of Solar Goods: ITAT
Case Title: D Light Energy P. Ltd. Versus Assessing Officer
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the Resale Price Method (RPM) is the most appropriate method to benchmark the transaction of the purchase of solar goods.
ITAT Kolkotha Allows Exemption Registration To Income Tax Bar Association, Sets Aside CIT Order
Case Title: Income Tax Bar Association Calcutta Versus Commissioner of Income Tax (Exemption)
The Calcutta Bench of Income Tax Appellate Tribunal (ITAT) has allowed the exemption registration to the income tax bar association as the registration application was not time-barred.
Case Title: Denso (Thailand) Co. Ltd Vs ACIT
The Delhi ITAT ruled that though income received by a non-resident entity towards services provided to Indian associate enterprises (AE) are in nature of 'fees for technical service' (FTS), but same cannot be taxed in India simply in absence of FTS clause under respect treaty provisions.
Assessments Concluded U/s 153A Without Mandatory Approval U/s 153D Would Be Void: Delhi ITAT
Case Title: Emaar MGF Land Limited Vs ACIT
The Delhi ITAT allowed the Assessee's appeal challenging assessments completed u/s 153A r/w Section 143(3) as void, in absence of mandatory approval u/s 153D.
Case Title: ITO Versus M/s. Ramachandra Setty & Sons SRS Building
The Banglore Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition of Rs. 1.36 crore on alleged unaccounted sales and purchases that were solely based on loose slips.
Submission Of Form-67 Is Not Mandatory For Availing Foreign Tax Credit: Delhi ITAT
Case Title: Suchi Agrawal Versus ITO
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that submission of Form-67 is not mandatory for availing foreign tax credit (FTC).
Purchasing Of Agricultural Land Is Outside Definition Of Capital Asset; Delhi ITAT Deletes Addition
Case Title: Mr. Ramnarayan Versus ITO
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee has purchased agricultural land, which is outside the definition of a capital asset; therefore, the deeming provision under Section 56(2)(x) of the Income Tax Act cannot be invoked.
Case Title: Zodiac Ventures Ltd. Versus ITO
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax disallowance based on presumptions of earning dividend income in the future is not sustainable.
Seized Documents Lack Information About Receipt Of Money: Mumbai ITAT Deletes Addition
Case Title: Yash Synthetics Private Limited Versus Assistant Commissioner of Income Tax
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition of Rs. 1.61 crores on the grounds that the seized documents lack information as to date and mode of receipt of “on money.”
Revisionary Power Can't Be Invoked On Allegation Of Improper Inquiry By AO: Delhi ITAT
Case Title: Sh. Dharam Singh Versus PCIT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessment order cannot be held to be erroneous and prejudicial to the interest of revenue merely on the allegation that the Assessing Officer has not made an inquiry and verification with regard to cash deposits as well as scrap sales.
Deeming Provisions Of Section 50C Can't Be Applied For Leasehold Rights: Delhi ITAT
Case Title: Shivdeep Tyagi Versus ITO
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that deeming provisions of Section 50C of the Income Tax Act cannot be applied for leasehold rights.
Orders Sent Through Email Went To Spam Folder; Cuttack ITAT Condones Delay Of 145 Days
Case Title: Tirupati Prasad Sahu Versus ITO
The Cuttack Bench of Income Tax Appellate Tribunal (ITAT) has condoned the delay of 145 days in filing an appeal by the assessee on the ground that the assessee mistakenly did not receive the orders sent through email, as many of these orders are going to spam folders.
Case Title: Carers World Wide Versus The Commissioner of Income Tax (Exemptions)
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has quashed the order rejecting the approval under Section 80G of the Income Tax Act as the Central Board of Direct Taxes (CBDT) has extended the due date for filing Form 10A/10AB via press release dated April 25, 2024, to June 30, 2022.
Wrong Classification In ITR Can't Result Into Denial In Deduction: Chennai ITAT
Case Title: National Contracting Company Versus DCIT
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the claim of the assessee cannot be denied for the reason that a deduction was mentioned in the wrong classification in the ITR, especially in the circumstances where all other evidence is available on record suggesting the deduction in pursuance of the provisions of Section 43B is available.
Case Title: Grand Paradi Co-op Housing Vs. Society Ltd. Versus The Income Tax Officer
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P(2)(d) of the Income Tax Act to the Grand Paradi Co-op Housing Society and held that cooperative banks are cooperative societies that are doing banking business.
Exhibition By Gem And Jewellery Export Promotion Council, Not Trade And Commerce: Mumbai ITAT
Case Title: Dy. Commissioner of Income-Tax Versus The Gem And Jewellery Export Promotion Council
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the exhibitions conducted by the assessee, the Gem and Jewellery Export Promotion Council, are not in the nature of trade and commerce.
Notice Sent On Incorrect Email Addresses Constitutes Improper Service: Ahmedabad ITAT
Case Title: LMP Motors Private Limited Versus ACIT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notices were sent to an incorrect email address, which led to the non-receipt of the notices by the assessee.
Non Service Of Hearing Notice Invalidates Ex-Parte Order: Kolkata ITAT
Case Title: M/s Littlestar Projects Pvt. Ltd vs. ITO
Finding that the hearing notices were not duly served by the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT directed the assessee to furnish its correct address before the competent authority.
Case Title: Supreme & Co. Pvt. Ltd vs. DCIT
The Kolkata ITAT held that delayed deposit of amount collected towards employees' contribution to PF renders claim of deduction u/s 36(1)(va) ineligible.
Case Title: DN Solutions (India) Private Limited vs. ITO
The Bangalore ITAT held that once the Department has accepted the capital gain offered by the seller upon transfer of its business, then said transaction cannot be doubted in the hands of the purchaser.
Case Title: Herbalife International India vs. DCIT
The Bangalore ITAT held that payment made by Assessee (Indian entity) to its foreign AE (Parent entity) for obtaining administrative services will not be taxable as FTS/FIS in India in terms of Indo USA DTAA, in absence of 'make available' clause in the agreement between both the parties.
Case Title: Ares Diversified vs. ACIT
The New Delhi ITAT held that once the DRP has chosen to reject the objections of assessee on the ground of delay, its resultant effect is confirmation of merits of draft order passed by the AO.
Case Title: Bankula Jaga Reddy vs. ITO
Finding that the assessee has shown highest rate of net profit in its first year of business, the Cuttack ITAT directed for estimation of net profit @2.75% on the total turnover of the assessee after reduction of the airport rent cost, sheet cost and truck rent cost as there is no possibility of assessee earning any income out of the said expenses.
