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Corporate guarantee valuation permits actual ascertainable commission while barring retroactive application and extended-period penalties for bona fid...
Proper-officer jurisdiction under UPGST penalty provisions upheld; participation on merits prevents bypassing the statutory appellate remedy through w...
Transitioned CENVAT credit may validly satisfy mandatory pre-deposit requirements for legacy service tax appeals through Electronic Credit Ledger debi...
Building-plan sanction charges require statutory authority; unauthorised fees and GST were quashed, while labour cess must follow prescribed collectio...
Pure-agent exclusion fails where hotel booking facilitators receive third-party services themselves, making entire customer consideration taxable as r...
The assessee borrowed loans from financial institutions at an interest rate of 12.75% and advanced loans to group companies or relatives at 12% interest rate. The assessee restricted the claim of interest expense u/s 57 to 12%, being the interest earned. The Principal Commissioner of Income Tax (PCIT) invoked revision u/s 263, disallowing the interest income, concluding the assessee failed to substantiate the nexus between the interest-bearing loans taken and advances made. The PCIT also held the Assessing Officer (AO) wrongly added unexplained cash credits to income without considering the assessee's submissions. The Income Tax Appellate Tribunal (ITAT) observed the assessee disclosed rental income correctly. Relying on the Supreme Court's decision in Malabar Industrial Co. Ltd., the ITAT held the PCIT failed to demonstrate the AO's order was erroneous due to inadequate inquiry. The AO conducted necessary inquiries and applied his mind. No prejudice was caused to the Revenue. The PCIT's order was unsustainable in law, and the assessee's appeal was allowed.
The assessee borrowed loans from financial institutions at an interest rate of 12.75% and advanced loans to group companies or relatives at 12% interest rate. The assessee restricted the claim of interest expense u/s 57 to 12%, being the interest earned. The Principal Commissioner of Income Tax (PCIT) invoked revision u/s 263, disallowing the interest income, concluding the assessee failed to substantiate the nexus between the interest-bearing loans taken and advances made. The PCIT also held the Assessing Officer (AO) wrongly added unexplained cash credits to income without considering the assessee's submissions. The Income Tax Appellate Tribunal (ITAT) observed the assessee disclosed rental income correctly. Relying on the Supreme Court's decision in Malabar Industrial Co. Ltd., the ITAT held the PCIT failed to demonstrate the AO's order was erroneous due to inadequate inquiry. The AO conducted necessary inquiries and applied his mind. No prejudice was caused to the Revenue. The PCIT's order was unsustainable in law, and the assessee's appeal was allowed.
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