Retrospective cancellation of charitable registration under section 12AB(4) was unsustainable; related-party benefit allegations did not prove nongenu...
Merger control notice and disclosure rules: Supreme Court limits penalties, rejects reopening of approved combination, and sets aside adverse findings...
The Appellate Tribunal addressed two key issues. Firstly, regarding speculative transactions u/s 43(5), it was determined that the transactions of purchasing and selling canola oil on high seas did not qualify as speculative as actual delivery of goods occurred to the ultimate buyer. Citing precedents, the Tribunal emphasized that physical delivery to the ultimate purchaser exempts transactions from being deemed speculative. Secondly, concerning the addition as interest income u/s 36(1)(iii), the Tribunal ruled in favor of the assessee. It was noted that the audited balance sheet substantiated the availability of interest-free funds, which were deemed adequate to cover the interest-free advances made. Following a Supreme Court decision, the addition made by the AO was deleted.
The Appellate Tribunal addressed two key issues. Firstly, regarding speculative transactions u/s 43(5), it was determined that the transactions of purchasing and selling canola oil on high seas did not qualify as speculative as actual delivery of goods occurred to the ultimate buyer. Citing precedents, the Tribunal emphasized that physical delivery to the ultimate purchaser exempts transactions from being deemed speculative. Secondly, concerning the addition as interest income u/s 36(1)(iii), the Tribunal ruled in favor of the assessee. It was noted that the audited balance sheet substantiated the availability of interest-free funds, which were deemed adequate to cover the interest-free advances made. Following a Supreme Court decision, the addition made by the AO was deleted.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4809 
Join Channel 
