Additional evidence in departmental appeals may include show-cause-notice material without introducing a new case where it merely corroborates existin...
Reasoned rectification orders require consideration of expenditure disclosed in income-tax returns, preventing revision based on incomplete income com...
Modified returns after business reorganisations cannot trigger fresh scrutiny once the original assessment was complete, invalidating related transfer...
Third-party loose sheets require reliable nexus before supporting unexplained expenditure additions; presumptions do not establish payer identity or o...
TNMM comparability using audited accounts and working-capital adjustments can eliminate unwarranted transfer-pricing additions where verified margins ...
Gross-profit additions on disputed purchases require reasoned appellate determination; disclosed claims alone do not support inaccurate-particulars pe...
Limitation after transfer-pricing remand: fresh TPO reference did not extend the assessment deadline, rendering the consequential assessment time-barr...
Interim judicial restraint on tax deduction prevents default, while supporting reasonable cause and penalty deletion for foreign-leg LFC reimbursement...
Business set-up is distinct from commercial commencement: once a division is established and ready to perform its functions, expenditure cannot be denied solely because commercial operations have not begun. Contemporaneous evidence recording completion of the first phase and commencement of production supports the division's operational status; subsequent financial distress or action against assets cannot retrospectively alter that status. Appellate authorities must consider written submissions and material evidence, including annual reports, and provide reasoned findings rather than merely adopting assessment reasoning. Expenditure of a newly established division cannot be categorised wholesale as capital; deductibility of each item remains subject to applicable statutory conditions.
Business set-up is distinct from commercial commencement: once a division is established and ready to perform its functions, expenditure cannot be denied solely because commercial operations have not begun. Contemporaneous evidence recording completion of the first phase and commencement of production supports the division's operational status; subsequent financial distress or action against assets cannot retrospectively alter that status. Appellate authorities must consider written submissions and material evidence, including annual reports, and provide reasoned findings rather than merely adopting assessment reasoning. Expenditure of a newly established division cannot be categorised wholesale as capital; deductibility of each item remains subject to applicable statutory conditions.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4894 
