Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
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Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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The ITAT allowed the assessee's appeal, deleting the additions under section 68 relating to unsecured loans treated as unexplained cash credits. The Tribunal held that the assessee satisfactorily discharged the onus by furnishing confirmations, PAN details, bank statements, TDS deductions, and other documentary evidence establishing the identity, genuineness, and creditworthiness of the loan creditors. The AO failed to produce any direct evidence demonstrating that the loans originated from undisclosed income, shell companies, or were accommodative entries. The Tribunal also rejected the AO's reliance on an estimated net profit rate of 17.5% applied to the turnover for additions, following precedent from a coordinate bench. Consequently, the additions were held unsustainable in law, and the impugned order was set aside in favor of the assessee.
The ITAT allowed the assessee's appeal, deleting the additions under section 68 relating to unsecured loans treated as unexplained cash credits. The Tribunal held that the assessee satisfactorily discharged the onus by furnishing confirmations, PAN details, bank statements, TDS deductions, and other documentary evidence establishing the identity, genuineness, and creditworthiness of the loan creditors. The AO failed to produce any direct evidence demonstrating that the loans originated from undisclosed income, shell companies, or were accommodative entries. The Tribunal also rejected the AO's reliance on an estimated net profit rate of 17.5% applied to the turnover for additions, following precedent from a coordinate bench. Consequently, the additions were held unsustainable in law, and the impugned order was set aside in favor of the assessee.
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