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    Low tax effect prevents appeal consideration while leaving the underlying question of law open for future adjudication.
    Women accused of money laundering may seek regular bail without statutory twin conditions when prolonged custody makes trial unlikely.
    Insurance policy reinstatement charges constitute taxable service consideration, while surrender and foreclosure charges fall outside the service-tax ...
    Section 80G approval cannot be denied for incidental religious objects where the institution remains genuinely charitable.
    Cheque execution and statutory presumptions under the Negotiable Instruments Act require a probable defence to rebut liability in revision.
    Verification of evidence and confrontation of material can require remand in agricultural income and unexplained investment disputes.
    Co-operative society interest deduction under Section 80P(2)(d) upheld in principle, subject to limited factual verification.
    Cenvat credit cannot be denied for curable invoice defects when services were received and tax was paid.
    Condonation of delay in Form No. 10BB filing allowed, with Section 11 exemption claim restored for merits verification.
    Section 14A disallowance upheld in principle, but Rule 8D computation must be limited to exempt-income yielding investments.
    Section 68 loan credits: primary evidence shifts the burden to Revenue, while disputed balances and interest were remanded for verification.
    Recorded business sales cannot be taxed again as unexplained cash credit without specific discrepancies in books or receipts.
    Section 80P deduction denied where return was filed only after notice and not within the section 139(1) due date.
    Explained cash deposits: section 69A addition failed where audited books and cash-flow records supported the deposits.
    Search assessment additions require incriminating evidence; unsupported commission and protective cash-expenditure additions were deleted.
    Development agreement with deferred possession was not a taxable transfer; capital gains addition deleted.
    Project cost treatment of ITC reversal allowed, while advance write-off and CSR expense claims failed on business nexus grounds.
    Customs inquiry on imported vehicle to be completed promptly while detention challenge remains open
    Supply of goods outside service tax levy: receipts for stone ballast and stone dust were held not taxable.
    Reasonable customs security conditions required for provisional release and re-export of seized goods under discretionary powers.
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Case Laws
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Low tax effect prevents appeal consideration while leaving the underlying question of law open for future adjudication.
Low tax effect resulted in the Supreme Court declining to entertain the appeal. The question of law, if any, remained open for adjudication in an appropriate case. The disposition rests solely on the low tax effect and does not determine the underlying legal issue on its merits, preserving that issue for future consideration.
AI TextQuick Glance (AI)Headnote
Women accused of money laundering may seek regular bail without statutory twin conditions when prolonged custody makes trial unlikely.
Women accused of money laundering fall within the first proviso to Section 45(1), which exempts them from the twin bail conditions and places their bail applications under the ordinary bail jurisdiction of the Bharatiya Nagarik Suraksha Sanhita. Prolonged pre-trial custody, a set-aside cognizance order, a lengthy prosecution complaint with numerous witnesses, pending scheduled-offence investigations, and prior attachment of assets may support regular bail where trial is unlikely to begin or conclude soon. The bail assessment remains without prejudice to the merits of the allegations.
AI TextQuick Glance (AI)Headnote
Insurance policy reinstatement charges constitute taxable service consideration, while surrender and foreclosure charges fall outside the service-tax levy.
Surrender, policy discontinuation and foreclosure charges in life-insurance policies do not constitute consideration for the relevant taxable service and therefore fall outside service tax. Reinstatement charges, paid to restore and continue the insurer-policyholder relationship, constitute consideration for continuation of taxable service and remain chargeable to service tax. A claimed bona fide belief does not preclude the applicable penalty where a specialised insurer is aware of its tax obligations.
AI TextQuick Glance (AI)Headnote
Section 80G approval cannot be denied for incidental religious objects where the institution remains genuinely charitable.
Approval under section 80G cannot be denied merely because an institution has incidental religious objects or incurs religious expenditure, so long as it is not confined to a particular religious community or caste and its purposes are not wholly or substantially religious. The statute permits religious expenditure within the prescribed ceiling, and the assessee's dominant objects were educational, social and welfare in nature, with no material showing restricted benefit to any community. The rejection also relied on unverified internet material without confronting the assessee, offending natural justice. On these grounds, approval under section 80G was held to be sustainable.
AI TextQuick Glance (AI)Headnote
Cheque execution and statutory presumptions under the Negotiable Instruments Act require a probable defence to rebut liability in revision.
Proof of a cheque and its execution triggers the statutory presumptions under the Negotiable Instruments Act in favour of the complainant, and the accused must rebut them with a probable defence on the preponderance of probabilities; mere denial is insufficient. A bank return memo carries its own presumptive value, and absence of a bank official does not by itself defeat documentary proof of dishonour. Financial capacity and liability must be displaced by reliable evidence, not conjecture. In revision, concurrent findings are not disturbed unless there is patent illegality, perversity, or miscarriage of justice.
AI TextQuick Glance (AI)Headnote
Verification of evidence and confrontation of material can require remand in agricultural income and unexplained investment disputes.
Agricultural income exemption under section 10(1) and an unexplained investment addition under section 69 were both discussed as issues requiring verification rather than final determination. The text notes that supporting bills, invoices and other material were produced, but ownership and agricultural use of land were not fully evidenced before the lower authorities, and grievance was raised that inquiry material had not been confronted. It also records that additional documents explaining the source of funds for property purchases were not examined by the Assessing Officer. The stated principle is that where material evidence is not properly confronted or additional evidence needs verification, the matter should be restored for fresh adjudication after giving a reasonable opportunity of hearing.
AI TextQuick Glance (AI)Headnote
Co-operative society interest deduction under Section 80P(2)(d) upheld in principle, subject to limited factual verification.
Interest earned by a co-operative housing society from investments with a co-operative bank was treated as eligible for deduction under Section 80P(2)(d) because a co-operative bank was regarded as falling within the ambit of a co-operative society for this purpose, and Section 80P(4) did not defeat the claim. The only remaining exercise was limited factual verification of the interest quantum and the genuineness of the underlying transactions. The assessee's claim was accepted in principle, and the matter was sent back to the Assessing Officer for that restricted verification, with the appeal allowed for statistical purposes.
AI TextQuick Glance (AI)Headnote
Cenvat credit cannot be denied for curable invoice defects when services were received and tax was paid.
Cenvat credit cannot be denied where the services were actually received and service tax was paid, merely because the invoices contained procedural defects. Absence of registration details, mismatch of address between head office and branch, issuance of invoices before registration, and non-compliance with the input service distributor mechanism were treated as curable lapses. Where the same legal entity received and used the services in business, such technical irregularities did not defeat substantive entitlement to credit. Denial of credit on these grounds alone was therefore not sustainable, and the assessee remained entitled to the credit.
AI TextQuick Glance (AI)Headnote
Condonation of delay in Form No. 10BB filing allowed, with Section 11 exemption claim restored for merits verification.
Delay in filing Form No. 10BB for charitable exemption was treated as condonable where the return was filed in time and the circumstances warranted a justice-oriented approach. Relying on prior decisions, the Tribunal restored the matter for verification instead of rejecting the exemption claim on limitation alone. The Assessing Officer was directed to examine the assessee's claim under Section 11 on merits after condoning the delay in furnishing the audit report.
AI TextQuick Glance (AI)Headnote
Section 14A disallowance upheld in principle, but Rule 8D computation must be limited to exempt-income yielding investments.
Disallowance under section 14A read with Rule 8D was justified where the assessee failed to substantiate its claim of nominal expenditure relatable to exempt income, and the record showed rejection of that claim on the basis that investment activity necessarily uses common resources and managerial inputs. The computation, however, had to be confined to the average value of investments that actually yielded exempt income, because using the entire investment base was erroneous. The principle was sustained in substance, but the disallowance required recomputation on the correct exempt-income yielding investments base.
AI TextQuick Glance (AI)Headnote
Section 68 loan credits: primary evidence shifts the burden to Revenue, while disputed balances and interest were remanded for verification.
In a section 68 dispute over loan credits, primary evidence such as returns, audited financials, bank statements, confirmations and replies to section 133(6) notices was treated as sufficient to establish identity, creditworthiness and genuineness; the Revenue's reliance on postal circumstances and low returned income, without specific defects or rebuttal material, was held insufficient, and the addition for three non-squared up loans was deleted. The remaining addition relating to five squared up loans was remanded for fresh verification because the issue depended on whether the sums were received in the relevant year or formed opening balances, with further opportunity to be given to the assessee. The related interest disallowance was ordered to be recomputed consequentially.
AI TextQuick Glance (AI)Headnote
Recorded business sales cannot be taxed again as unexplained cash credit without specific discrepancies in books or receipts.
Cash deposits recorded as business sales were not treated as unexplained cash credit where purchases and sales were already accepted, the books were not rejected, and no specific discrepancy was found; absence of a stock register alone was held insufficient, and taxing the same receipts again would amount to double taxation. The deletion of the addition was upheld. By contrast, a capital introduction claimed to be sourced from a gift required proof of the donor's identity, genuineness of the transaction and creditworthiness; as that verification was incomplete and the appellate relief lacked adequate inquiry, the matter was remanded for de novo examination.
AI TextQuick Glance (AI)Headnote
Section 80P deduction denied where return was filed only after notice and not within the section 139(1) due date.
The amended section 80AC, effective from 1 April 2018 and applicable from assessment year 2018-19, extends the due-date filing condition to deductions under Chapter VI-A, including section 80P. A return furnished only in response to notice under section 148 does not satisfy the requirement of filing the return within section 139(1) for claiming the deduction. The Tribunal further held that the CBDT circular relied on for condonation did not empower the appellate authority to regularise delayed filing, and earlier precedents were displaced by the amended statutory position. Deduction under section 80P was therefore not allowable and the disallowance was sustained.
AI TextQuick Glance (AI)Headnote
Explained cash deposits: section 69A addition failed where audited books and cash-flow records supported the deposits.
Cash deposits during the demonetization period were treated as explained where they were supported by audited books of account, cash book, bank book and other records showing availability of cash from business receipts and earlier withdrawals. The tax authority had not pointed to specific defects in the books, rejected the book results, or produced material showing that the withdrawn cash was used for any other purpose; on that basis, no addition under section 69A could be sustained merely on suspicion. The chart filed before the first appellate authority was only a compilation from already filed records, so the objection that it amounted to impermissible additional evidence was rejected.
AI TextQuick Glance (AI)Headnote
Search assessment additions require incriminating evidence; unsupported commission and protective cash-expenditure additions were deleted.
Additions for alleged unaccounted commission in a search assessment require incriminating material establishing that the assessee received commission income or acted as a broker; sale deeds found in the assessee's possession alone do not suffice. The commission addition was therefore deleted. A protective addition for alleged cash expenditure cannot be sustained where another person has accepted ownership of the seized documents, supported by affidavit, and the material has been examined in settlement proceedings without requiring further addition. The protective addition was consequently deleted, and the Revenue's appeal failed.
AI TextQuick Glance (AI)Headnote
Development agreement with deferred possession was not a taxable transfer; capital gains addition deleted.
A 56-day delay in filing the appeal was condoned after the Tribunal accepted the assessee's advanced age, illiteracy, family medical hardship, death, and related difficulties faced by the legal heirs as bona fide reasonable cause. On the capital gains issue, the Tribunal held that a development agreement cum power of attorney did not amount to a transfer of immovable property because the developer received only a limited licence to enter and construct, while effective possession was deferred until delivery of the built-up area. As no deemed transfer arose in the relevant year, the capital gains addition was deleted.
AI TextQuick Glance (AI)Headnote
Project cost treatment of ITC reversal allowed, while advance write-off and CSR expense claims failed on business nexus grounds.
Project-related ITC reversal was allowed as part of project cost where the assessee showed it was accounted for under the percentage completion method and apportioned between cost of sales and closing work in progress, so the disallowance was deleted. The write-off of advances was not accepted on the existing record because the assessee had not adequately shown that the advance arose in the course of business or had become irrecoverable; the matter was remanded for fresh consideration with an opportunity to adduce evidence. CSR or social activity expenditure was disallowed because the assessee failed to establish a nexus with its real-estate business or that the outlay was wholly and exclusively for business purposes.
AI TextQuick Glance (AI)Headnote
Customs inquiry on imported vehicle to be completed promptly while detention challenge remains open
The Supreme Court directed the Department to complete its inquiry promptly and proceed further in accordance with law in a pending customs dispute involving an imported vehicle. Because the main writ petition remained pending and the proceedings under the Customs Act were not yet concluded, the Court did not decide the legality or validity of the detention. That challenge was expressly left open, and the parties were left to pursue the pending remedies before the High Court or otherwise available in law.
AI TextQuick Glance (AI)Headnote
Supply of goods outside service tax levy: receipts for stone ballast and stone dust were held not taxable.
Receipts shown by supply orders and State VAT records to relate to supply of stone ballast and stone dust were treated as transactions in goods, placing them outside the service tax levy. The remaining receipts were regarded as exempt road-construction receipts, so only the supply-of-material component was in dispute. On that basis, the demand of service tax on the four supply-of-material transactions was set aside, and the related interest and penalty failed to the same extent.
AI TextQuick Glance (AI)Headnote
Reasonable customs security conditions required for provisional release and re-export of seized goods under discretionary powers.
Customs authorities must impose provisional release and re-export security conditions on seized imported goods in a reasonable and proportionate manner. Under Section 110A of the Customs Act, the discretion to demand security cannot be exercised mechanically or in a way that makes release impracticable, and a circular cannot replace an independent assessment. Applying that principle, the security conditions for provisional release and re-export were moderated because they were found unduly harsh and insufficiently justified, with the bank guarantees reduced and bonds ordered for the full value of the goods. Partial relief was therefore granted.

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2021 (11) TMI 376 - AT - Income Tax

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Tribunal upholds capitalization of NTPC project expenses, citing consistency with prior judgments.
The Tribunal dismissed the Revenue's appeal, upholding the Ld. CIT(A)'s decision to allow expenses related to the NTPC project to be capitalized. The ... Summary

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Acts Income Tax