Working-capital adjustment determines whether software-services transfer-pricing margins fall within the statutory tolerance range, eliminating any ad...
Permanent establishment deductions upheld for expatriate salaries, direct costs and trading losses, while head-office costs require fresh classificati...
Data transmission equipment classification under CTSH 8517 62 remains distinct from residual classification, with exemption evidence requiring scrutin...
Penalty u/s 271(c) was imposed on additions of 25% of non-verifiable purchases debited to the trading account. The addition was made on estimation of total turnover after rejecting the books of accounts. Notices u/s 133(6) were issued to various purchase parties, but all were returned by the postal authority, and the assessee did not produce the parties to confirm the same. The lower authorities observed that the revenue did not establish that the assessee had concealed or submitted inaccurate particulars of income to attract Section 271(1)(c). The addition was admittedly made on an estimate basis. The ratio of the judgment in Parasamal Babulal Jain and various ITAT pronouncements covered the assessee's case. Since the addition was made on an estimate basis, the penalty was rightly deleted by the CIT(A). The ITAT found no illegality in the CIT(A)'s order and confirmed it, deciding against the revenue.
Penalty u/s 271(c) was imposed on additions of 25% of non-verifiable purchases debited to the trading account. The addition was made on estimation of total turnover after rejecting the books of accounts. Notices u/s 133(6) were issued to various purchase parties, but all were returned by the postal authority, and the assessee did not produce the parties to confirm the same. The lower authorities observed that the revenue did not establish that the assessee had concealed or submitted inaccurate particulars of income to attract Section 271(1)(c). The addition was admittedly made on an estimate basis. The ratio of the judgment in Parasamal Babulal Jain and various ITAT pronouncements covered the assessee's case. Since the addition was made on an estimate basis, the penalty was rightly deleted by the CIT(A). The ITAT found no illegality in the CIT(A)'s order and confirmed it, deciding against the revenue.
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