Issues: Whether the addition made under section 68 in respect of unsecured loans was sustainable when the assessee had furnished confirmations, bank statements, income-tax returns, financials and other supporting material to establish the identity and creditworthiness of the lenders and the genuineness of the transactions.

Analysis: The assessee produced documentary evidence showing the identity of the lender companies, their bank statements, income-tax returns, financials, PAN, MCA details and repayment particulars. The records showed that the loans were routed through banking channels and no cash deposits were found in the lenders' accounts before advancing the money. The Assessing Officer did not bring any contrary material to demonstrate that the transactions were accommodation entries or that the lenders lacked capacity. Once the assessee discharged the initial onus, the burden shifted to the Assessing Officer to rebut the evidence with cogent material, which was not done.

Conclusion: The addition under section 68 was not sustainable and was rightly deleted.

Ratio Decidendi: Where the assessee substantiates a loan transaction with primary evidence establishing identity, creditworthiness and genuineness, and the Assessing Officer fails to dislodge that evidence with material on record, an addition under section 68 cannot be upheld.

Issues: (i) Whether the addition of Rs. 10 lakhs as unexplained money was sustainable; (ii) Whether the ad hoc disallowance of 10% of murum expenses was justified.

Issue (i): Whether the addition of Rs. 10 lakhs as unexplained money was sustainable.

Analysis: The cash seized from the assessee's employee was claimed to belong to the assessee company. The statement of the employee about the source and movement of cash changed over time, and the lower authorities relied on the inconsistency to uphold the addition under section 69A. However, the Tribunal found force in the assessee's plea that the cash trail and availability of cash in the relevant branch books required verification before a final finding could be recorded. In the circumstances, the proper course was to examine the cash book and the availability of cash at the concerned offices and then decide the matter on facts and law after giving due opportunity.

Conclusion: The addition was not finally sustained and the issue was restored to the Assessing Officer for fresh verification.

Issue (ii): Whether the ad hoc disallowance of 10% of murum expenses was justified.

Analysis: The Assessing Officer had issued notices to a large number of suppliers, but the assessee was not given a realistic opportunity to produce all of them within a very short time. The Tribunal also noted that the assessee's turnover and direct expense ratio were broadly commensurate, the books were audited, no specific defect in the book results was pointed out, and no past disallowance of this nature had been made in scrutiny assessments. In these circumstances, the estimate-based disallowance lacked justification.

Conclusion: The disallowance was deleted in favour of the assessee.

Final Conclusion: The appeal succeeded only in part, with one issue remanded for fresh adjudication and the other decided in favour of the assessee.

Ratio Decidendi: An unexplained-cash addition cannot be sustained without proper verification of the cash trail and books, and an ad hoc disallowance of expenditure is unjustified where the claim remains broadly commensurate with business turnover and no specific defect in the accounts is established.

Issues: Whether an addition for unexplained investment could be sustained solely on the basis of SFT and Form 26AS information without specifying the relevant bank account details and without independent verification of the assessee's reconciliation and third-party confirmation.

Analysis: The assessment was founded on information reflected in the SFT system, but the record did not contain the necessary particulars of the bank account or supporting material to show that the impugned amount was actually credited to the assessee. The assessee denied maintaining the current account referred to by the Assessing Officer and furnished details of savings bank accounts as well as a confirmation from the concerned entity explaining that the entry had been wrongly reflected due to a technical/uploading error. The additional evidence was not effectively examined and no corroborative material was brought on record to establish unexplained investment under the Act.

Conclusion: The addition was not sustainable and the deletion made by the first appellate authority was upheld.

Final Conclusion: The appeal failed and the relief granted to the assessee was maintained.

Ratio Decidendi: An addition for unexplained investment cannot rest only on SFT or Form 26AS entries unless the Revenue identifies the underlying transaction with supporting particulars and verifies the assessee's explanation and supporting confirmations.

Issues: Whether the addition for alleged on-money payment and the assessment framed under section 153C could be sustained solely on the basis of third-party material and statements, in the absence of corroborative evidence against the assessee and without furnishing adverse material or cross-examination.

Analysis: The assessee denied any cash payment over and above the recorded sale consideration. The assessment was founded on statements recorded during search in the case of a third party and on material seized from that third party, but no seized document or independent evidence was brought to show that the assessee had made the alleged on-money payment in the relevant year. The adverse material and statements relied upon were not confronted to the assessee in a manner meeting the requirements of natural justice, and no opportunity of cross-examination of the persons whose statements were used against the assessee was provided. In these circumstances, third-party material without corroboration was held insufficient to sustain the addition.

Conclusion: The addition under section 69 and the consequential assessment action were not sustainable, and relief was granted to the assessee.

Issues: (i) Whether reassessment was invalid for want of fresh tangible material and amounted to a prohibited change of opinion or borrowed satisfaction; (ii) Whether the reassessment notice was barred by limitation.

Issue (i): Whether reassessment was invalid for want of fresh tangible material and amounted to a prohibited change of opinion or borrowed satisfaction.

Analysis: The reopening was founded on the same investigation-wing information regarding alleged bogus purchases that had already been considered in the original scrutiny assessment under Section 143(3) of the Income-tax Act, 1961. No new material emerged to justify a second look at the concluded issue. Reopening on the identical factual foundation was therefore treated as a revisit of an already examined matter, which is impermissible in reassessment proceedings.

Conclusion: The reopening was invalid on account of borrowed satisfaction and change of opinion, in favour of the assessee.

Issue (ii): Whether the reassessment notice was barred by limitation.

Analysis: The reassessment process was tested against the surviving period available under the post-reform reassessment framework. On the record, the fresh notice under Section 148 of the Income-tax Act, 1961 was issued after the last permissible date identified by the appellate authority and was therefore beyond the surviving period. The notice consequently failed the limitation test.

Conclusion: The reassessment notice was time-barred, in favour of the assessee.

Final Conclusion: The reassessment could not be sustained on jurisdictional grounds, and the merits of the additions did not survive for adjudication.

Ratio Decidendi: Reassessment cannot be sustained where it is initiated on the same material already examined in the original assessment and the statutory notice is issued beyond the permissible limitation period.

Issues: Whether a consolidated satisfaction note for multiple assessment years, without year-wise bifurcation of incriminating material, validly triggers jurisdiction under section 153C of the Income-tax Act, 1961 and supports the consequential assessment.

Analysis: The assessment was founded on a satisfaction note recorded in a composite form for several assessment years, but it did not identify year-wise incriminating material or explain how the seized material related to each year. The decision relies on the principle that section 153C requires satisfaction that the material seized is likely to have a bearing on the total income of the relevant assessment year or years, and that the jurisdiction cannot be assumed mechanically for an entire block of years merely because some material was found in a search. Applying the later binding view favouring year-linked satisfaction, the consolidated note was treated as insufficient to sustain jurisdiction.

Conclusion: The consolidated satisfaction note was held invalid for assumption of jurisdiction under section 153C, and the assessment was quashed in favour of the assessee.

Ratio Decidendi: Jurisdiction under section 153C can be assumed only on the basis of satisfaction linked to incriminating material having a bearing on the total income of the particular assessment year concerned, and a composite note for multiple years without year-wise nexus is not sufficient.

Issues: Whether the additions made under sections 68 and 69C in respect of sale consideration of diamonds and alleged commission expenditure were sustainable, and whether the receipts from sale of the diamonds were liable to be treated as long-term capital gains.

Analysis: The Tribunal noted that the existence of the diamonds, their processing into cut and polished diamonds, and their subsequent sale stood supported by the declarations under the Income Disclosure Scheme, accepted tax payments, invoices, ledger accounts, bank statements, confirmations, stock records, and replies received from job workers and purchasers in response to notices under section 133(6) of the Income-tax Act, 1961. It further held that the period of holding had to be computed in accordance with Explanation 1(i)(b) to section 2(42A) of the Income-tax Act, 1961, because the diamonds had been acquired by gift from the previous owner, and that the relevant date under the disclosure scheme did not govern holding period for capital gains. The Tribunal also found no basis to treat the sale proceeds as unexplained cash credits or to sustain commission expenditure, as the sales were genuine and the evidentiary record rebutted the Revenue's objections.

Conclusion: The additions under sections 68 and 69C were deleted and the sale proceeds were held taxable, if at all, as long-term capital gains already declared by the assessee.

Issues: (i) Whether the assessee was to be treated as a resident of Kazakhstan for the overlapping period under the treaty tie-breaker rule and, if so, whether salary income for that period was taxable only in Kazakhstan; (ii) Whether rental income from immovable property situated in London was taxable in India; (iii) Whether dividend income arising from shares held in the Netherlands required fresh adjudication with consequential foreign tax credit directions; (iv) Whether interest income had to be taxed at the beneficial treaty rate of 10%.

Issue (i): Whether the assessee was to be treated as a resident of Kazakhstan for the overlapping period under the treaty tie-breaker rule and, if so, whether salary income for that period was taxable only in Kazakhstan.

Analysis: The domestic Act did not provide for split residency for part of a previous year, but the treaty tie-breaker mechanism could determine treaty residence where a person was regarded as resident in both Contracting States under their domestic laws. On the facts, the assessee had moved to Kazakhstan on assignment, had closer personal and economic relations there, and the employment was exercised there during the overlapping period.

Conclusion: The assessee was to be regarded as a resident of Kazakhstan for treaty purposes, and the salary income for the overlapping period was taxable only in Kazakhstan. The deletion of the addition was upheld.

Issue (ii): Whether rental income from immovable property situated in London was taxable in India.

Analysis: Income from immovable property is governed by the treaty article relating to immovable property and is taxable in the Contracting State where the property is situated. The property was located in the United Kingdom, and the relevant allocation rule placed taxing rights in the source State.

Conclusion: The rental income was not taxable in India, and the addition was deleted.

Issue (iii): Whether dividend income arising from shares held in the Netherlands required fresh adjudication with consequential foreign tax credit directions.

Analysis: The dividend income arose from the Netherlands, and the relevant treaty for allocation of taxing rights was the India-Netherlands treaty. Since the material facts necessary for applying that treaty were not before the Tribunal, the issue could not be finally determined on merits and required de novo consideration by the Assessing Officer, with credit to be considered in accordance with the return and Form 67 if tax was again brought to charge.

Conclusion: The dividend issue was remanded for fresh adjudication with consequential foreign tax credit directions.

Issue (iv): Whether interest income had to be taxed at the beneficial treaty rate of 10%.

Analysis: The interest income had been offered under the India-Kazakhstan treaty at the concessional rate, and once treaty residence in Kazakhstan was accepted, the applicable treaty rate governed the computation of tax on that income.

Conclusion: The interest income was to be taxed at the beneficial rate of 10% under the treaty.

Final Conclusion: The assessee obtained substantive relief on residency-based treaty claims and on salary, rental, and interest income, while the dividend issue was sent back for fresh examination with consequential credit directions.

Ratio Decidendi: Where a taxpayer is treated as resident in both States under domestic law, treaty residence must be determined by the tie-breaker article, and the resulting treaty allocation governs the taxation of income under the relevant distributive articles.

Issues: Whether cash deposits made by an educational society during the demonetisation period, being receipts already reflected in the books and returned as gross receipts, could be assessed as unexplained cash credits under section 68 of the Income-tax Act, 1961 and taxed under section 115BBE of the Income-tax Act, 1961.

Analysis: The assessee was a registered society engaged in education and enjoyed exemption status. The cash deposits were explained as fee collections and were supported by the cash book, fee records, course details and other documentary evidence. The receipts had already been disclosed as gross receipts in the return of income and in the books of account. On these facts, the addition was made only because of the pattern and quantum of cash deposited during the demonetisation period. The governing principle applied was that section 68 does not apply where the receipts are already disclosed as income or gross receipts of a charitable entity, and the same income cannot be brought to tax again merely because it was deposited in cash.

Conclusion: The addition under section 68 and the consequential application of section 115BBE were not sustainable, and the relief was granted to the assessee.

Ratio Decidendi: Where a charitable or educational has already disclosed receipts as income or gross receipts in its books and return, section 68 cannot be invoked again merely because those receipts were later deposited in cash in the bank account.

Issues: Whether the disallowance of carting expenses on the footing of double debit was justified when the assessee produced separate invoices, debit notes, and vouchers showing that transportation charges were separately billed and paid to cement suppliers.

Analysis: The assessee consistently maintained that the carting charges were separately invoiced by the cement suppliers through debit notes and were not included in the purchase value recorded under purchases. Sample invoices, debit notes, and accounting vouchers were placed on record to support this stand. The detailed reply dated 10.04.2021 and the supporting material were not dealt with in the assessment order or the appellate order. Where relevant submissions and evidence are ignored, the foundation of the disallowance cannot be sustained.

Conclusion: The disallowance of carting expenses was not justified and was deleted in favour of the assessee.

Issues: (i) Whether depreciation on goodwill arising from amalgamation was allowable; (ii) Whether disallowance under section 14A could be made by invoking Rule 8D without recording dissatisfaction; (iii) Whether the reassessment notice issued under section 148 was time-barred; (iv) Whether the assessment framed in the name of a non-existing entity was valid.

Issue (i): Whether depreciation on goodwill arising from amalgamation was allowable.

Analysis: The goodwill in question was the same goodwill that had arisen on amalgamation and had been carried forward through subsequent restructuring and conversion. The prior co-ordinate Bench decision had already held that such goodwill, being the excess of purchase consideration over net asset value, is an acquired intangible asset falling within the scope of business or commercial rights of similar nature and is eligible for depreciation under section 32(1). No fresh factual or legal distinction was shown for the year under appeal.

Conclusion: Depreciation on goodwill was allowable and the issue was decided in favour of the assessee.

Issue (ii): Whether disallowance under section 14A could be made by invoking Rule 8D without recording dissatisfaction.

Analysis: The assessee had made a suo motu disallowance. The Assessing Officer proceeded to apply Rule 8D without first recording dissatisfaction regarding the correctness of the assessee's claim having regard to the accounts. The controlling requirement under section 14A(2) was not complied with, and the Tribunal followed the jurisdictional precedents holding that Rule 8D cannot be invoked mechanically in the absence of such recorded satisfaction.

Conclusion: The disallowance under section 14A read with Rule 8D was unsustainable and the issue was decided in favour of the assessee.

Issue (iii): Whether the reassessment notice issued under section 148 was time-barred.

Analysis: The original notice issued on 30.06.2021 was treated as a deemed notice under section 148A(b) in terms of the Supreme Court's directions. After supply of material and receipt of reply, the reassessment proceedings had to be completed within the surviving limitation under the old regime as extended by TOLA. The fresh notice under section 148 was issued beyond the surviving period, rendering the reassessment initiation invalid.

Conclusion: The reassessment notice was barred by limitation and the issue was decided in favour of the assessee.

Issue (iv): Whether the assessment framed in the name of a non-existing entity was valid.

Analysis: The company had ceased to exist upon conversion into an LLP, yet the assessment was framed in the company's name. The governing principle is that an assessment on a non-existent entity is a nullity and without jurisdiction. No distinguishing feature was shown to depart from that rule.

Conclusion: The assessment framed in the name of the non-existing entity was invalid and the issue was decided in favour of the assessee.

Final Conclusion: All the revenue appeals failed. The Tribunal upheld the relief granted to the assessee on depreciation on goodwill, rejected the section 14A disallowance, and sustained the quashing of reassessment and the assessment on jurisdictional grounds.

Ratio Decidendi: Goodwill arising on amalgamation is a depreciable intangible asset when it represents an acquired commercial right, section 14A disallowance under Rule 8D requires prior recorded dissatisfaction, reassessment must be initiated within the surviving statutory time limit, and an assessment framed against a non-existing entity is void.

Issues: Whether the protective addition made under section 69A on account of alleged on-money payment for purchase of property could be sustained.

Analysis: The addition was founded on material relating to alleged on-money payment to the developer, but the record did not show any direct evidence linking the assessee to the alleged undisclosed payment. The Tribunal noted that the case rested on presumption rather than concrete proof and that the absence of specific, corroborative material made the addition unsustainable. Following the legal position applied in the cited co-owner and jurisdictional precedents, the Tribunal held that a protective addition cannot stand without reliable evidence establishing the assessee's actual involvement in the alleged transaction.

Conclusion: The protective addition was deleted and the issue was decided in favour of the assessee.

Issues: Whether the addition made under section 69C of the Income-tax Act, 1961 on account of alleged unexplained expenditure for purchase of cryptocurrency was sustainable when the same assessing unit had accepted presumptive income from the same crypto transactions in the preceding assessment year and the material relied upon lacked transaction-level particulars.

Analysis: The assessment was reopened on information regarding crypto currency transactions, but the information did not contain specific particulars such as the name of the cryptocurrency, broker details, dates, quantity, or transaction-wise trail. In the assessee's own case for the earlier year, the same assessment unit had accepted the returned income on presumptive basis from the sale of cryptocurrency and had not made any addition for the purchase side. For the year under appeal, the same unit adopted a different approach and treated the purchase value as unexplained expenditure under section 69C. The record did not disclose any cogent basis for such inconsistent treatment, and the assessee's disclosure of presumptive income was accepted for the preceding year on the same set of general information.

Conclusion: The addition under section 69C was not sustainable and was deleted in favour of the assessee.

Ratio Decidendi: Where the revenue relies on general crypto transaction information without transaction-specific particulars, and the same assessing unit has accepted presumptive income from the identical activity in an earlier year, a later addition of the purchase value as unexplained expenditure under section 69C without a consistent factual basis is unjustified.

Issues: Validity of the satisfaction note recorded for initiating proceedings under section 153C and the consequential assessment framed thereunder.

Analysis: The satisfaction note was held to be identically worded to earlier cases where the Tribunal had already found that the recording did not expressly state that the seized material had a bearing on the determination of the total income of the assessee. In the absence of such recorded satisfaction, the initiation of proceedings under section 153C was treated as mechanical and legally unsustainable. The assessments made pursuant to that satisfaction note were therefore held to be vitiated.

Conclusion: The satisfaction note and the consequent assessments under section 153C were quashed, in favour of the assessee.

Issues: (i) whether the Tribunal's earlier observation regarding corporate guarantee fee required rectification under section 254(2) of the Income-tax Act, 1961; (ii) whether the reference made to the basis of relief on MEIS export incentives required modification in the rectification order.

Issue (i): Whether the Tribunal's earlier observation regarding corporate guarantee fee required rectification under section 254(2) of the Income-tax Act, 1961.

Analysis: The rectification power extends to correcting an error apparent from the record. The earlier order had stated that the issue stood settled by orders of co-ordinate Benches, whereas the record showed that relief had been granted by the first appellate authority on the footing that the corporate guarantee transaction had been accepted at arm's length in earlier years and that there was no change in facts. The reference in the earlier order therefore needed clarification to reflect the actual basis of the relief.

Conclusion: The earlier observation was modified to state that the transaction had been accepted at arm's length by the TPO and AO in earlier years and, in the absence of any change in facts, no interference was warranted.

Issue (ii): Whether the reference made to the basis of relief on MEIS export incentives required modification in the rectification order.

Analysis: The rectification application pointed out that the earlier order referred to co-ordinate Bench decisions as the basis for the relief on MEIS incentives, whereas the appellate authority had also relied on other judicial decisions while treating the incentives as capital receipts and granting relief under the normal computation and book profit provisions. Since the challenge was confined to correcting the descriptive basis recorded in the Tribunal's order, the relevant paragraph was amended accordingly.

Conclusion: The reference in the earlier order was replaced to reflect reliance on the cited judicial decisions and the appellate authority's order.

Final Conclusion: The rectification application succeeded and the Tribunal's earlier order was clarified on both disputed aspects without disturbing the substantive relief already granted.

Ratio Decidendi: A rectification under section 254(2) may be used to correct an apparent misdescription of the basis of an appellate conclusion where the underlying relief remains unchanged.

Issues: Whether an unsigned and blank notice issued under section 143(2) of the Income-tax Act, 1961 was valid and capable of conferring jurisdiction to complete assessment under section 143(3) of the Income-tax Act, 1961.

Analysis: The notice was found to be left unsigned and blank. Section 282A(1) of the Income-tax Act, 1961 makes signature of the notice mandatory, whether the notice is issued in paper form or communicated electronically. The deeming provision in section 282A(2) concerns authentication by printing or stamping of the name and office of the designated authority and does not dispense with the requirement of signature under section 282A(1). An invalid notice under section 143(2) cannot serve as the jurisdictional foundation for assessment proceedings under section 143(3).

Conclusion: The notice under section 143(2) of the Income-tax Act, 1961 was invalid, void ab initio, and incapable of conferring jurisdiction; the assessment framed under section 143(3) of the Income-tax Act, 1961 was therefore quashed in favour of the assessee.

Ratio Decidendi: A notice required by the Act must be signed as mandated by section 282A(1) of the Income-tax Act, 1961, and an unsigned notice under section 143(2) is invalid and cannot confer jurisdiction for assessment under section 143(3).

Issues: (i) whether the proportionate disallowance of deduction under section 80IA on profits from NLD/ILD services and exclusion of other services income was justified; (ii) whether telecom payments made to foreign operators were chargeable as royalty so as to attract disallowance under section 40(a)(i); (iii) whether the ad hoc disallowance for alleged non-deduction of tax on office running and maintenance expenses required verification; and (iv) whether the transfer pricing adjustment, including rejection of the assessee's TNMM and limited risk model and adoption of the other method, was sustainable.

Issue (i): Whether the proportionate disallowance of deduction under section 80IA on profits from NLD/ILD services and exclusion of other services income was justified.

Analysis: The deduction under section 80IA was already available to the assessee's telecommunication undertaking, and the dispute concerned whether the later NLD/ILD activity constituted a separate new undertaking or only an of the existing eligible business. The Tribunal followed its own earlier orders in the assessee's case and accepted that the factual matrix remained the same, with the telecommunication business having commenced before the sunset date and the later licences not creating a separate undertaking for deduction purposes.

Conclusion: The disallowance was deleted and the issue was decided in favour of the assessee.

Issue (ii): Whether telecom payments made to foreign operators were chargeable as royalty so as to attract disallowance under section 40(a)(i).

Analysis: The payments were for data transmission and telecom connectivity services outside India. The Tribunal applied the jurisdictional High Court view that retrospective amendments to the domestic royalty definition do not expand the scope of the treaty definition, and that such telecom services do not constitute royalty under the applicable tax treaty. As the sums were not chargeable to tax in India, no withholding obligation arose under section 195.

Conclusion: The disallowance under section 40(a)(i) was deleted and the issue was decided in favour of the assessee.

Issue (iii): Whether the ad hoc disallowance for alleged non-deduction of tax on office running and maintenance expenses required verification.

Analysis: The assessee asserted that the amount had already been disallowed suo motu in the return computation, and the Revenue sought remand for verification. The Tribunal found it appropriate to restore the matter to the Assessing Officer to verify the factual claim and apply the law accordingly.

Conclusion: The issue was remanded for verification and was not finally decided on merits.

Issue (iv): Whether the transfer pricing adjustment, including rejection of the assessee's TNMM and limited risk model and adoption of the other method, was sustainable.

Analysis: The Tribunal examined the group's telecom operating model, the inter-company service arrangement, the agreed compensation mechanism, and the benchmarking adopted by the assessee. It held that the assessee's entity-level remuneration structure and the consistent acceptance of the model in earlier years could not be ignored without cogent contrary material. At the same time, the Tribunal accepted only part of the assessee's computation and found that the TPO's approach was overly simplistic in ignoring the agreed mechanism and the commercial structure of the global operations. The adjustment was therefore not sustained in full.

Conclusion: The transfer pricing adjustment was partly deleted and the issue was decided partly in favour of the assessee.

Final Conclusion: The assessee obtained substantial relief on the deduction under section 80IA and the royalty-based disallowance, received remand on one ancillary disallowance issue, and secured partial relief on transfer pricing, leaving only limited adjustment to be dealt with in accordance with the Tribunal's directions.

Ratio Decidendi: A telecommunication activity that is only an expansion of an already eligible undertaking does not lose section 80IA benefit merely because later licences are obtained, and telecom data transmission payments are not royalty where the treaty definition cannot be enlarged by retrospective domestic amendment.

Issues: Whether the respondent's acquittal under Section 138 of the Negotiable Instruments Act, 1881 was unsustainable because the cheque was signed by the accused, statutory presumptions under Sections 118 and 139 arose, and the accused failed to rebut the case of legally enforceable debt or liability.

Analysis: The cheque signature was admitted and both courts accepted that the cheque was executed by the accused. Once execution is admitted, the presumptions under Sections 118 and 139 operate that the cheque was issued for consideration and towards discharge of a debt or other liability. The surrounding facts, including presentation of the cheque, dishonour, service of statutory notice, and the absence of any reply or rebuttal evidence from the accused, supported the complainant's version. The defence regarding loss of cheque book, security cheque, or absence of funds was neither put effectively to the complainant nor established by independent evidence. The explanation regarding the complainant's financial capacity was found acceptable on the evidence and did not displace the statutory presumptions.

Conclusion: The respondent failed to rebut the statutory presumptions, and the acquittal was not justified. The conviction under Section 138 of the Negotiable Instruments Act, 1881 and the sentence were restored in favour of the appellant.

Issues: Whether leave should be granted to the petitioner to amend the writ petition to join Daiwa Securities Group INC as a necessary party and related directions on amendment, service and listing.

Analysis: The Court examined the factual position that, if the Department's contention succeeded, Daiwa Securities Group INC would be the affected party and therefore a necessary party to the writ petition. The Court considered the petitioner's request to join Daiwa Securities Group INC and found it appropriate in the circumstances to permit the procedural amendment. The Court specified timelines for carrying out the amendment, dispensing with re-verification, and directed service on the newly added respondent with a returnable date for further directions.

Conclusion: Leave is granted to the petitioner to amend the writ petition to join Daiwa Securities Group INC as Respondent No. 3 within two weeks from uploading of the order; re-verification is dispensed with; the petitioner shall effect service on the newly added respondent returnable on 16th April, 2026; the matter is listed for directions on 16th April, 2026.

Issues: Whether the provisional attachment of properties belonging to the appellant under the Prevention of Money Laundering Act, 2002 was justified on the finding that such properties represented proceeds of crime or were purchased with proceeds of crime.

Analysis: The appeal challenged confirmation of a provisional attachment order under Section 26 of the Prevention of Money Laundering Act, 2002. The record shows multiple FIRs and an ECIR describing a scheme of collecting funds from investors and diverting them into purchases and transfers. Material on record includes direct transfers from the main accused to sellers and transfers into the appellant's bank account and property acquisitions in the appellant's name. The appellant relied on asserted transfers to her husband and on her alleged government service and savings, but did not produce the husband's bank statements or other documentary evidence to establish that the impugned transfers derived from legitimate savings and not from proceeds of crime. The principle that provisional attachment may be made in respect of property in the possession of a person who is a recipient of proceeds of crime, even if not an accused, applies; the precondition under Section 5(1) is satisfaction from material in possession that the property is derived from criminal activity. The appellant failed to discharge the reverse burden to show that the impugned transfers were legitimate and maintained over the intervening period.

Conclusion: The provisional attachment of the appellant's properties was justified and the confirmation of the provisional attachment order is upheld; the appeal is dismissed.

Final Conclusion: The appellate challenge to the confirmation of provisional attachment under the Prevention of Money Laundering Act, 2002 is rejected for failure to rebut material indicating that the properties or funds were proceeds of crime.

Ratio Decidendi: Under the Prevention of Money Laundering Act, 2002, provisional attachment under Section 5(1) may be ordered against a person in possession of proceeds of crime even if not an accused, and the recipient must discharge the reverse burden by adducing credible evidence that the property or transfers are not derived from criminal activity; failure to do so permits confirmation of provisional attachment.