Penny-stock additions require transaction-specific evidence; general investigation material alone cannot establish undisclosed income or accommodation...
Transfer pricing comparability prioritises reliable external CUPs and foreign-currency LIBOR benchmarks for exports, borrowings and delayed receivable...
Section 153C satisfaction and seized electronic records sustained unexplained-investment addition, subject to proportionate ownership-share verificati...
HC held that picking up a tax return for scrutiny without prior approval from PCIT/PDIT/CIT/DIT violates procedural guidelines. While tax authorities can select returns for scrutiny based on verifiable tax evasion information under Instruction No. 5/2017, the critical procedural requirement of obtaining jurisdictional authority's approval was not met in this case. The absence of mandatory approval rendered the assessment order invalid, and ITAT's decision to set aside the assessment for AY 2016-17 was upheld as legally sound and procedurally correct.
HC held that picking up a tax return for scrutiny without prior approval from PCIT/PDIT/CIT/DIT violates procedural guidelines. While tax authorities can select returns for scrutiny based on verifiable tax evasion information under Instruction No. 5/2017, the critical procedural requirement of obtaining jurisdictional authority's approval was not met in this case. The absence of mandatory approval rendered the assessment order invalid, and ITAT's decision to set aside the assessment for AY 2016-17 was upheld as legally sound and procedurally correct.
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