Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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The Appellate Tribunal considered the issue of addition u/s 68 where the income reported in the ITR was deemed too low to support a high amount advanced. The AO did not reject the books of accounts or doubt the genuineness of documents. The Tribunal found that the appellant had established the identity, creditworthiness of lenders, and genuineness of transactions through proper banking channels. The source of source for unsecured loans need not be proven. The tax audit report of the lender did not raise adverse comments. The loans were reflected in the lender's audited balance sheet, and scrutiny assessments did not draw adverse inferences. The genuineness of the transaction and creditworthiness of the lender were established, leading to a decision in favor of the assessee as the addition was deemed unsustainable.
The Appellate Tribunal considered the issue of addition u/s 68 where the income reported in the ITR was deemed too low to support a high amount advanced. The AO did not reject the books of accounts or doubt the genuineness of documents. The Tribunal found that the appellant had established the identity, creditworthiness of lenders, and genuineness of transactions through proper banking channels. The source of source for unsecured loans need not be proven. The tax audit report of the lender did not raise adverse comments. The loans were reflected in the lender's audited balance sheet, and scrutiny assessments did not draw adverse inferences. The genuineness of the transaction and creditworthiness of the lender were established, leading to a decision in favor of the assessee as the addition was deemed unsustainable.
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