Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
Penalty u/s 271(1)(c) for furnishing inaccurate particulars of income - adjustment made u/s 92CA - penalty levied u/s 271(1)(c) on the adjustment made u/s 92CA is not legally valid. CIT(A) rightly deleted addition as AO relied on adjustment made by TPO without examining whether penalty was imposable. Explanation 7 to Section 271(1)(c) places onus on assessee to show ALP computed u/s 92C in good faith and due diligence. Assessee computed ALP per Section 92C, no dispute over MAM, PLI or timescale. AO/TPO adopted different comparables. AO did not allege lack of good faith and due diligence. AO failed to demonstrate specific act, fact or conduct proving lack of good faith and due diligence. Lack of due diligence in ALP determination not indicated or inferable. Conditions for invoking Explanation 7 to Section 271(1)(c) did not exist. Revenue's appeal dismissed.
Penalty u/s 271(1)(c) for furnishing inaccurate particulars of income - adjustment made u/s 92CA - penalty levied u/s 271(1)(c) on the adjustment made u/s 92CA is not legally valid. CIT(A) rightly deleted addition as AO relied on adjustment made by TPO without examining whether penalty was imposable. Explanation 7 to Section 271(1)(c) places onus on assessee to show ALP computed u/s 92C in good faith and due diligence. Assessee computed ALP per Section 92C, no dispute over MAM, PLI or timescale. AO/TPO adopted different comparables. AO did not allege lack of good faith and due diligence. AO failed to demonstrate specific act, fact or conduct proving lack of good faith and due diligence. Lack of due diligence in ALP determination not indicated or inferable. Conditions for invoking Explanation 7 to Section 271(1)(c) did not exist. Revenue's appeal dismissed.
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TaxTMI 
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