Issues: (i) Whether CCDs could be re-characterised as equity for determining the arm's length price of interest, and whether the CUP benchmarking could be rejected on that basis; (ii) Whether bad-debt deduction was allowable where trade receivables were actually written off though business dealings with debtors continued.

Issue (i): Whether CCDs could be re-characterised as equity for determining the arm's length price of interest, and whether the CUP benchmarking could be rejected on that basis.

Analysis: Chapter X requires benchmarking of the transaction actually undertaken and permits re-characterisation only in recognised and limited circumstances. Compulsory conversion at a future date does not displace the character of CCDs as debt until conversion. Regulatory and accounting classifications under other legal regimes cannot, by themselves, justify treating a valid borrowing as equity for transfer-pricing purposes. Since rejection of the CUP method rested solely on the unsustainable equity characterisation, that rejection could not stand. However, the comparability of the assessee's CUP analysis, including adjustments under Rule 10B, had not been independently examined.

Conclusion: In favour of the assessee, CCDs must be treated as debt instruments until conversion and the interest cannot be assigned a nil arm's length price through re-characterisation as equity. Determination of the arm's length price is to be undertaken afresh on the merits of the benchmarking analysis and by a legally permissible method.

Issue (ii): Whether bad-debt deduction was allowable where trade receivables were actually written off though business dealings with debtors continued.

Analysis: Following the post-amendment position under section 36(1)(vii), actual write-off in the books, together with satisfaction of section 36(2), is sufficient; independent proof that the debt had become irrecoverable is not required. The receivables arose in the ordinary course of business and were actually extinguished through corresponding entries in the debtor accounts. Continuing commercial dealings with a debtor, or absence of recovery notices and litigation, does not negate a bona fide write-off of specific outstanding receivables.

Conclusion: In favour of the assessee, the bad-debt write-off satisfied the statutory conditions and the disallowance was deleted.

Final Conclusion: Interest on CCDs is required to be benchmarked on the footing that the instruments remain debt until conversion, while trade receivables genuinely written off in the accounts qualify for deduction without separate proof of actual irrecoverability.

Issues: Whether the petitioner should be directed to pursue the matter before the GST Appellate Tribunal despite its registration and numbering processes not being fully operational.

Analysis: The GST Appellate Tribunal had been constituted and had commenced functioning for adjudication of GST disputes. In the peculiar circumstances, including that the matter had reached the final stage before the High Court, the petitioner was permitted to approach the President of the Tribunal for registration, numbering, listing and, where necessary, consideration of interim relief. Priority hearing was considered appropriate.

Outcome: The Special Leave Petition was disposed of with liberty to approach the President of the GST Appellate Tribunal.

Issues: Whether the land transferred was agricultural land outside the statutory definition of a capital asset and whether the consequential capital-gains addition required fresh factual determination.

Analysis: The record contained conflicting material regarding the nature of the land and its location vis-a -vis municipal limits or notified distance. The revenue-authority reports sought by the Assessing Officer were not on record, while the assessees relied on revenue records and sale deeds describing the land as agricultural. The factual position therefore lacked sufficient clarity for determination of the capital-gains liability.

Outcome: The disputed issues were restored to the Assessing Officer for de novo assessment after proper factual inquiry and reasonable opportunity to the assessees.

Issues: Whether additional Panchayat and Municipal stamp duties could be levied on an assignment deed by which a reconstruction company acquired a bank's loan, security interests and rights under an existing mortgage.

Analysis: The original lender had created and registered the mortgage over the borrower's immovable property and paid the applicable stamp duties at that stage. The assignment deed did not create a fresh mortgage, charge or encumbrance over immovable property; it only transferred the lender's loans, rights, liabilities and underlying security interests to the reconstruction company. Section 75 of the M.P. Panchayat Raj Evam Gram Swaraj Adhiniyam, 1993 and Section 161 of the M.P. Municipalities Act, 1961 apply to instruments relating to the specified transfers or mortgages of immovable property. The notification issued under Section 9(1)(a) of the Indian Stamp Act, 1899 specifically fixed duty on securitisation of loans or assignment of debt with underlying immovable securities at 0.1% of the loan securitised or debt assigned, rather than by reference to the property's market value. Re-imposition of mortgage-related duty on the assignment would result in duplicate recovery and unjust enrichment.

Conclusion: No stamp duty beyond the amount already paid under the assignment-deed notification was chargeable from the petitioner; the demand founded on the Panchayat and Municipal duty provisions was unsustainable.

Issues: Whether the acquittal for the offence of dishonour of cheque was sustainable where the Magistrate found that the statutory demand notice was not served and questioned the complainant's financial capacity.

Analysis: Production of the postal receipt showing dispatch of the written demand notice to the accused's correct address raises a presumption of issuance under Section 27 of the General Clauses Act; actual service is not a statutory requirement. A comparison of signatures on the cheque and acknowledgment card could not establish non-issuance of notice. Once the acknowledgment card is tendered, a denial of receipt must be proved by the accused, including through evidence of the postman. The complainant's unrebutted evidence explained the source of the loan, while the defence admitted prior financial dealings and issuance of the cheque as security without showing discharge of the liability or explaining the complainant's continued possession of it. The complainant consequently discharged the initial burden and was entitled to the presumptions under Sections 118 and 139 of the Negotiable Instruments Act.

Conclusion: The acquittal was unsustainable; the accused committed the offence under Section 138 of the Negotiable Instruments Act and was convicted.

Issues: Whether CENVAT credit of service tax paid on the disputed business-related services, including services used beyond the factory gate, was admissible as input-service credit.

Analysis: The disputed services fell within the inclusive portion of the definition of input service under Rule 2(l) of the CENVAT Credit Rules, 2004. C&F agency services used for handling manufactured excisable goods remained eligible despite being used beyond the factory gate. The definition was broad enough to cover services used by the manufacturer for its business, except services specifically falling within the exclusion category. The disputed services had not been shown to fall within that exclusion.

Conclusion: CENVAT credit on the disputed services was admissible; denial and recovery under Rule 14 of the CENVAT Credit Rules, 2004 were not sustainable. The finding is in favour of the assessee.

Issues: Whether the assessment order and consequential appellate rejection were sustainable when the assessee's reply was not considered and no opportunity of hearing was granted before an adverse tax determination.

Analysis: The reply filed in response to the show-cause notice was not denied, but had not been brought to the assessing authority's notice and was consequently not considered. Section 75(4) of the Central Goods and Services Tax Act, 2017 mandates an opportunity of hearing where an adverse decision is contemplated, irrespective of a specific request. The assessment record did not establish compliance with that mandatory requirement. Availability of an appellate remedy did not bar writ relief against an order vitiated by breach of natural justice; the appellate rejection could not survive once the foundational assessment lacked legal validity.

Conclusion: The assessment order and consequential actions, including the appellate rejection, were unsustainable; the issue was decided in favour of the assessee.

Issues: Whether an assessment order imposing an adverse GST liability can be sustained without affording the registered person an opportunity of personal hearing.

Analysis: Section 75(4) of the Central Goods and Services Tax Act, 2017 mandates a hearing where an adverse decision is contemplated, irrespective of whether the taxable person has made a written request. The admitted absence of a further notice affording personal hearing before the assessment rendered the statutory requirement unmet.

Conclusion: The assessment order was unsustainable for failure to provide the mandatory opportunity of hearing, in favour of the assessee.

Issues: (i) Whether the stamp-duty guideline value prevailing on the date of an oral agreement, rather than on the subsequent registration date, was applicable under section 50C for computing capital gains from the land sales; (ii) Whether the entire amount treated as income from other sources was attributable to the assessee.

Issue (i): Whether the stamp-duty guideline value prevailing on the date of an oral agreement, rather than on the subsequent registration date, was applicable under section 50C for computing capital gains from the land sales.

Analysis: The first proviso to section 50C, being curative and beneficial, applied retrospectively. An agreement fixing consideration need not be written; an oral agreement is sufficient. The purchasers' confirmations and bank-channel advances received before revision of the guideline values established the oral agreements and satisfied the condition for applying the proviso. The undisputed guideline values prevailing on the agreement dates were lower than the declared sale prices.

Conclusion: Section 50C was inapplicable to the relevant land sales, and the capital-gains additions based on subsequent guideline values were deleted in favour of the assessee.

Issue (ii): Whether the entire amount treated as income from other sources was attributable to the assessee.

Analysis: The assessee confined the challenge to the extent of her share in the amount. Verification was required to determine whether her share was Rs. 41,58,000 or another amount.

Conclusion: The issue was remitted to the Assessing Officer for verification of the assessee's share in favour of the assessee.

Final Conclusion: The capital-gains additions under section 50C do not survive, while the quantum attributable to the assessee as income from other sources remains subject to factual verification.

Ratio Decidendi: Where an oral agreement fixes sale consideration and part consideration is received through banking channels before the agreement date, the guideline value on that date governs section 50C; if the declared consideration exceeds that value, no deemed substitution arises.

Issues: (i) Whether a composite proceeding under Section 74 for multiple assessment years is legally sustainable; (ii) Whether denial of cross-examination of witnesses whose statements were relied upon in adjudication violated principles of natural justice; (iii) Whether pocket diaries could be relied upon without proving them through their authors or custodians.

Issue (i): Whether a composite proceeding under Section 74 for multiple assessment years is legally sustainable.

Analysis: Section 74 proceedings must relate to the relevant tax period. A composite notice and adjudication covering distinct assessment years as a block assessment is inconsistent with the statutory scheme.

Conclusion: A composite assessment under Section 74 for multiple assessment years is not legally sustainable, in favour of the assessee.

Issue (ii): Whether denial of cross-examination of witnesses whose statements were relied upon in adjudication violated principles of natural justice.

Analysis: Cross-examination is required where relied-upon witness statements form the basis of the proposed liability and the noticee seeks to test their veracity. Non-retraction of statements, the possibility that employees may be influenced, or an assumption that cross-examination may favour the noticee are not sound grounds to refuse the opportunity. Documentary material treated only as corroboration of such statements does not independently sustain the finding. The right does not extend to co-noticees penalised in the same proceedings, since requiring their examination would compel them to depose against themselves.

Conclusion: Denial of cross-examination on the stated grounds was unjustified and violated principles of natural justice, in favour of the assessee; cross-examination may be sought only in respect of persons who are not co-noticees.

Issue (iii): Whether pocket diaries could be relied upon without proving them through their authors or custodians.

Analysis: A document may be treated as relevant evidence only when it is produced or proved by its author or by a person responsible for maintaining it. The record did not disclose such proof for the pocket diaries, and the statements of the identified goldsmiths maintaining them had not been recorded.

Conclusion: The pocket diaries cannot be relied upon without proper proof through their authors or custodians, in favour of the assessee.

Final Conclusion: Any renewed adjudication must be undertaken tax-period-wise and must afford a meaningful opportunity to test relied-upon evidence and establish the evidentiary basis of documents.

Ratio Decidendi: A tax adjudication founded on relied-upon witness statements and unproved corroborative documents must comply with natural justice by allowing effective cross-examination where warranted, and separate tax periods cannot be combined into a single Section 74 assessment.

Issues: Whether gain arising from cancellation or early settlement of forward foreign exchange contracts entered into to hedge foreign exchange exposure on underlying debt investments is assessable as capital gains or as income from other sources.

Analysis: The forward contracts were inextricably linked to the underlying debt securities held as investments. The applicable foreign-exchange hedging framework restricted the contracts to the value and tenor of the underlying exposure, and required their cancellation or unwinding when the underlying securities were sold. No material established independent foreign-exchange trading. As hedging instruments, the contracts took the character of the underlying capital investments. They constituted capital assets, and their cancellation or early settlement extinguished contractual rights and obligations, amounting to a transfer. Consistent earlier decisions on identical facts remained binding in the absence of reversal or stay by a superior forum.

Conclusion: The gain from cancellation or early settlement of the hedging forward foreign exchange contracts is taxable under the head Capital Gains and not under the head Income from Other Sources, in favour of the assessee.

Issues: Whether a single composite assessment order covering multiple tax periods could validly be passed under the GST assessment framework.

Analysis: The applicable assessment scheme requires proceedings to be confined to the relevant tax period. A composite order spanning more than one tax period is impermissible, as it affects the registered person's statutory benefits and appellate remedies. The revenue did not dispute either the governing legal position or the fact that the impugned assessment covered multiple tax periods.

Conclusion: The composite assessment order was invalid and was set aside in favour of the assessee. The assessing authority may initiate separate assessment proceedings for the respective tax periods after affording due opportunity.

Issues: Whether Cenvat credit was admissible on Scientific and Technical Consultancy Service used for development and export of technology/know-how.

Analysis: The identical issue had already been determined in the assessee's own earlier matters. The service was rendered over a period during which the assessee had contractual rights to supervise and monitor the research and development activity. Such participation constituted use and consumption of the input service. The fact that the service invoice and its subsequent export bore the same date did not establish that the service had been exported without use.

Conclusion: Cenvat credit on Scientific and Technical Consultancy Service was admissible to the assessee.

Issues: Whether interest paid on customs duty was refundable where the importer paid the duty beyond three days from removal of the system inability.

Analysis: The applicable advisory permitted a refund of interest only where duty and interest were paid within three days of the stipulated date of removal of system inability. For an importer not registered on ICEGATE, that date was the date of registration and receipt of portal credentials. The appellant registered on 09.08.2023 but paid duty only on 09.11.2023, and therefore did not satisfy the prescribed condition for interest waiver.

Conclusion: The interest paid is not refundable; the claim for waiver fails.

Issues: Whether exemption for investment of long-term capital gains in a residential property can be denied where completion, delivery and registration of the property occur beyond the stipulated period for reasons beyond the assessee's control.

Analysis: Section 54F is a beneficial provision intended to promote investment of capital gains in a residential house and must receive a liberal construction. Its essential requirement is investment of the capital gains towards purchase or construction of the residential property; completion of construction, occupation, delivery or registration within the prescribed period is not indispensable where the assessee has made the investment and the delay is attributable to the developer.

Conclusion: The assessee is entitled to exemption under Section 54F notwithstanding delayed completion, delivery and receipt of legal title to the residential villa due to factors beyond the assessee's control.

Issues: Whether the writ petition, earlier disposed of solely on limitation and subsequently set aside by the Supreme Court, should be revived to adjudicate the unaddressed challenge to disallowance of depreciation on goodwill.

Analysis: The earlier disposal addressed only limitation, while the remaining grounds concerning depreciation on goodwill were unrelated and had not been adjudicated. Revival avoided requiring a fresh petition for issues already raised. Pending consideration of those grounds, protection against further action on the reassessment notice was warranted without prejudice to the Revenue's objections on maintainability and availability of an appellate remedy.

Outcome: The interim application was allowed; the writ petition was revived, listed for admission, and further proceedings pursuant to the reassessment notice were stayed until further orders.

Issues: Whether earlier allotment letters and the memorandum of understanding, subsequently revised as part of a continuing real-estate transaction, constituted an agreement fixing consideration so as to attract the provisos to Section 56(2)(x)(b) of the Income-tax Act, 1961 and require adoption of the stamp duty value on the allotment date rather than the registration date.

Analysis: An allotment supported by an MOU and acted upon through banking-channel payments may constitute an agreement to sell for applying the provisos. Subsequent changes to building plans, flat particulars, parking rights and consideration did not negate the earlier arrangement where the Revenue had not established cancellation, rescission, abandonment or refund of payments. The provisos are intended to alleviate hardship arising from appreciation in stamp duty value between the parties' commitment to a transaction and formal registration. A contrary construction would improperly deny their benefit in genuine under-construction property transactions merely because project-related revisions occurred. The earlier allotment also formed part of the documentary chain to the registered agreement.

Conclusion: The provisos to Section 56(2)(x)(b) of the Income-tax Act, 1961 applied; the stamp duty value as on the relevant allotment or agreement date, and not the registration date, was required to be considered. The deletion of the deemed-income addition was upheld.

Issues: Whether non-compliance with the standard operating procedure for reminders before return filing relieves a registered person from statutory late fee for delayed filing of returns.

Analysis: The obligation to furnish returns within the prescribed time is statutory. The standard operating procedure for system-generated reminders is only a facilitative measure and does not displace the taxpayer's statutory obligation. Notice had also been served, while the returns remained unfiled within the stipulated period.

Conclusion: Failure to follow the reminder procedure does not exempt the assessee from late fee for delayed filing of returns; the issue is decided against the assessee.

Issues: Whether deletion of additions for allegedly unverifiable business expenses, after sustaining a proportionate disallowance, gave rise to a substantial question of law.

Analysis: The appellate findings established that vouchers and bills produced during remand proceedings had been verified and no specific defect was identified. A proportionate disallowance was nevertheless sustained for expense heads lacking adequate supporting material, control, or explanation. The Tribunal affirmed this fact-based determination, including the sustained disallowances, and the findings were concurrent.

Conclusion: No substantial question of law arose; the deletion of the balance additions was sustained in favour of the assessee.

Issues: (i) Whether the reassessment notice and consequential assessment for Assessment Year 2015-16 were barred by limitation; (ii) Whether the Revenue's concession concerning reassessment notices in Rajeev Bansal applied independently to invalidate the impugned proceedings.

Issue (i): Whether the reassessment notice and consequential assessment for Assessment Year 2015-16 were barred by limitation.

Analysis: The amended reassessment regime governed a notice issued after 01.04.2021. Although the six-year period from the end of the relevant assessment year expired on 31.03.2022, the time allowed to respond to the notice under Section 148A(b) was excluded under the first proviso to Section 149(1), and the fourth proviso afforded a further seven-day extension. The resulting outer date for passing the order under Section 148A(d) and issuing the notice under Section 148 was 09.04.2022. The order and notice issued on 18.04.2022 exceeded that mandatory outer limit. The period available for passing an order under Section 148A(d) could not override the statutory cap for issuance of the notice under Section 148.

Conclusion: The reassessment notice, consequential assessment, and penalty were time-barred and are quashed, in favour of the assessee.

Issue (ii): Whether the Revenue's concession concerning reassessment notices in Rajeev Bansal applied independently to invalidate the impugned proceedings.

Analysis: The concession was made in the specific context of limitation extensions under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Since the Revenue did not rely on that enactment to sustain these proceedings, which were instead tested under Sections 148, 148A and 149, the concession could not be extended to the present facts. The issue did not affect the relief granted on the independent ground of statutory limitation.

Conclusion: The concession in Rajeev Bansal was not germane to the impugned reassessment proceedings, against the assessee.

Final Conclusion: Reassessment jurisdiction must be exercised within the outer time limit prescribed for issuance of a notice under Section 148, after giving effect only to the statutory exclusions and extensions.

Ratio Decidendi: The time available for an order under Section 148A(d) does not enlarge the mandatory outer limitation under Section 149(1) for issuing a reassessment notice under Section 148.