Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
Constitutional judicial review permits challenges to ECIRs and connected money-laundering proceedings where coercive action affects fundamental intere...
The High Court held that the Assessing Officer cannot disallow losses merely based on assumptions and surmises regarding the commercial expediency of transactions undertaken by the assessee. The transaction for sale and purchase of dies was a pure commercial transaction entered into by the assessee in its commercial wisdom, and the fact that the assessee incurred a loss in the said transaction was not disputed. There was no allegation of any undisclosed consideration or clandestine transaction to reverse the loss. The Assessing Officer made the addition solely based on their perception of what was commercially expedient, which is not within their purview. The assessee had justified its commercial decision by reflecting enhanced turnover and profits from its business, but even if profits were not earned, it would not make a difference, as the examination is limited to whether the transactions were genuine, not whether they were commercially expedient. The High Court found no material other than suspicion to justify the addition and decided in favor of the assessee.
The High Court held that the Assessing Officer cannot disallow losses merely based on assumptions and surmises regarding the commercial expediency of transactions undertaken by the assessee. The transaction for sale and purchase of dies was a pure commercial transaction entered into by the assessee in its commercial wisdom, and the fact that the assessee incurred a loss in the said transaction was not disputed. There was no allegation of any undisclosed consideration or clandestine transaction to reverse the loss. The Assessing Officer made the addition solely based on their perception of what was commercially expedient, which is not within their purview. The assessee had justified its commercial decision by reflecting enhanced turnover and profits from its business, but even if profits were not earned, it would not make a difference, as the examination is limited to whether the transactions were genuine, not whether they were commercially expedient. The High Court found no material other than suspicion to justify the addition and decided in favor of the assessee.
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