Timing mismatch in income recognition requires verification whether receipts were already taxed in an earlier year; matter remitted for fresh examinat...
FOB transaction value and export incentives: customs valuation cannot override contractual export benefits or support confiscation without valid proof...
ITAT held that the AO's rejection of the assessee's DCF valuation under s.56(2)(viib) read with r.11UA was impermissible absent pinpointing of specific errors; the DCF methodology adopted by the assessee was a permissible valuation and cannot be supplanted by AO's unsupported conclusion. The Tribunal further held that where substantial subscriptions emanated from a non-resident subscriber, s.56(2)(viib) could not sustain additions in respect of those subscriptions. AO's subsequent addition under s.68 was unsustainable because AO did not challenge identity, genuineness or creditworthiness nor discharge the onus to disprove the assessee's explanation. The Tribunal deleted the addition of Rs.60,06,500 and allowed the grounds.
ITAT held that the AO's rejection of the assessee's DCF valuation under s.56(2)(viib) read with r.11UA was impermissible absent pinpointing of specific errors; the DCF methodology adopted by the assessee was a permissible valuation and cannot be supplanted by AO's unsupported conclusion. The Tribunal further held that where substantial subscriptions emanated from a non-resident subscriber, s.56(2)(viib) could not sustain additions in respect of those subscriptions. AO's subsequent addition under s.68 was unsustainable because AO did not challenge identity, genuineness or creditworthiness nor discharge the onus to disprove the assessee's explanation. The Tribunal deleted the addition of Rs.60,06,500 and allowed the grounds.
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