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...
HC quashed penalty u/s 271(1)(c) for non-filing of ITR within prescribed period, ruling no concealment of income occurred. Assessee had uploaded financial statements and tax audit report, paid all taxes, but failed to file ITR due to inadvertent human error, subsequently filing upon s.148 notice. Court held Explanation 3 targets dishonest persons concealing income to evade taxes, not bonafide mistakes where no tax liability exists. Since assessee was entitled to refund with no concealment of particulars, AO erred in applying s.271(1)(c) and calculating penalty amount. Both AO and Revisional Authority failed to appreciate factual circumstances. Assessee's appeal allowed, penalty set aside.
HC quashed penalty u/s 271(1)(c) for non-filing of ITR within prescribed period, ruling no concealment of income occurred. Assessee had uploaded financial statements and tax audit report, paid all taxes, but failed to file ITR due to inadvertent human error, subsequently filing upon s.148 notice. Court held Explanation 3 targets dishonest persons concealing income to evade taxes, not bonafide mistakes where no tax liability exists. Since assessee was entitled to refund with no concealment of particulars, AO erred in applying s.271(1)(c) and calculating penalty amount. Both AO and Revisional Authority failed to appreciate factual circumstances. Assessee's appeal allowed, penalty set aside.
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TaxTMI 
TaxTMI 
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