Charitable trust registration requires a specified-violation notice; settled cash deposits and related-party payments did not justify cancellation or ...
External development charges trigger TDS under section 194C, while disputed administrative payments require factual verification and fresh adjudicatio...
Section 270AA penalty immunity requires identified statutory defaults and a hearing before rejection; reassessment disclosure may constitute under-rep...
Section 80JJAA employee-cost deduction allowed for deployed staff but barred against transfer-pricing income enhancement, with pricing issues remanded...
Transfer-pricing methodology protects commercially genuine associated-enterprise payments, while pre-2016 secondary adjustments and related notional i...
Negative liens over operating assets can constitute international transactions requiring arm's-length pricing reflecting restricted borrowing and expa...
Cross-examination rights in Customs Broker revocation inquiries require witness examination; procedural denial may be cured through fresh adjudication...
The HC upheld the dismissal of wilful default proceedings against the respondent, holding that no mens rea or intentional diversion of borrowed funds was established. The court affirmed that at the time of approving corporate debt restructuring, the lenders, including BOB, had a duty to verify genuine financial distress and absence of fund siphoning, which they satisfied. The mere investment of company funds in subsidiaries did not constitute diversion of borrowed funds under the Master Circular. The court found the forensic audit report and related committees' conclusions to be flawed and unsupported by evidence, especially given multiple prior forensic audits clearing the respondent of fraud. The court emphasized that wilful default requires deliberate and calculated intent, which was not demonstrated here. The criminal proceedings against the respondent were also dismissed. Accordingly, the appeal was dismissed, affirming that the wilful default declaration was unwarranted and improperly initiated.
The HC upheld the dismissal of wilful default proceedings against the respondent, holding that no mens rea or intentional diversion of borrowed funds was established. The court affirmed that at the time of approving corporate debt restructuring, the lenders, including BOB, had a duty to verify genuine financial distress and absence of fund siphoning, which they satisfied. The mere investment of company funds in subsidiaries did not constitute diversion of borrowed funds under the Master Circular. The court found the forensic audit report and related committees' conclusions to be flawed and unsupported by evidence, especially given multiple prior forensic audits clearing the respondent of fraud. The court emphasized that wilful default requires deliberate and calculated intent, which was not demonstrated here. The criminal proceedings against the respondent were also dismissed. Accordingly, the appeal was dismissed, affirming that the wilful default declaration was unwarranted and improperly initiated.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
