Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
Penalty notices under section 271(1)(c) must clearly identify whether the charge concerns concealment of income or furnishing inaccurate particulars. The two limbs are independent and may require different explanations and treatment; therefore, a notice retaining both alternatives without specifying the applicable limb denies the assessee a proper opportunity to defend. Recording satisfaction to initiate penalty proceedings does not cure this defect. Applying this principle, the High Court treated the defective notice as invalid, upheld deletion of the penalty, and dismissed the revenue's appeal.
Penalty notices under section 271(1)(c) must clearly identify whether the charge concerns concealment of income or furnishing inaccurate particulars. The two limbs are independent and may require different explanations and treatment; therefore, a notice retaining both alternatives without specifying the applicable limb denies the assessee a proper opportunity to defend. Recording satisfaction to initiate penalty proceedings does not cure this defect. Applying this principle, the High Court treated the defective notice as invalid, upheld deletion of the penalty, and dismissed the revenue's appeal.
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