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    Misreporting-based tax penalty excludes bona fide explanation protection where inadmissible deductions caused under-reporting of income.
    Estimated cash-deposit additions alone cannot establish concealment for penalty, resulting in deletion of the levy.
    TNMM aggregation prevents separate benchmarking of inseparable IT support costs, while debt-free receivables and research deductions receive relief.
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Statutory presumption for notified gold arises only when seizure...

Customs confiscation requires objective proof of smuggling; uncorroborated retracted statements without cross-examination cannot sustain penalties.

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Customs September 15, 2026 Case Laws AT
Statutory presumption for notified gold arises only when seizure rests on reasonable belief, supported by objective material, that the particular gold was smuggled. Purity, lack of documents at interception and private carriage do not establish foreign origin. Domestic acquisition may be established through contemporaneous invoices, supplier confirmation and banking records; confiscation for breach of an import exemption condition requires identification of that breached condition. Statements recorded under customs powers remain admissible, but retracted statements require scrutiny of voluntariness, reliability and independent corroboration. Where such statements and a panchanama are challenged, denial of cross-examination of their makers materially prejudices the affected party and violates natural justice. Confiscation and related penalties were set aside, and the departmental appeal was dismissed.

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Acts Income Tax