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...
The HC quashed the reopening notice issued under section 148, holding that the disputed amount was a credit balance related to F&O trading, payments, margins, and interest, not an unsecured loan. The Court affirmed that trade advances are excluded from the scope of deemed dividend under section 2(22)(e), consistent with established precedents. It emphasized that loans and advances given in the normal course of business benefiting both parties do not attract section 2(22)(e). Further, the Court reiterated the necessity of a reasoned link to the formation of belief for reopening assessments. Consequently, the reassessment was invalid, and the assessee's appeal was allowed.
The HC quashed the reopening notice issued under section 148, holding that the disputed amount was a credit balance related to F&O trading, payments, margins, and interest, not an unsecured loan. The Court affirmed that trade advances are excluded from the scope of deemed dividend under section 2(22)(e), consistent with established precedents. It emphasized that loans and advances given in the normal course of business benefiting both parties do not attract section 2(22)(e). Further, the Court reiterated the necessity of a reasoned link to the formation of belief for reopening assessments. Consequently, the reassessment was invalid, and the assessee's appeal was allowed.
Note: It is a system-generated summary and is for quick reference only.
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TaxTMI 
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