Minimum Import Price restrictions for Black Pepper, Areca-nuts and Apples upheld; procedural laying failure not fatal, notifications to be placed befo...
Transaction value between related persons requires market-equivalent pricing; importer must prove declared value mirrors ordinary international trade ...
Classification of exported insecticides under export tariff affirmed; reclassification and related penalties set aside and MEIS scrip jurisdiction rec...
Misclassification between copra and dry coconut: customs recovery and re-valuation quashed for lack of prior licensing-authority invalidation, appeals...
The dominant issue was whether cash deposited by the company's directors and later transferred to the assessee's account for share purchase could be taxed as unexplained credit under s. 68. The Tribunal held that the authorities proceeded on mere suspicion by relying only on the directors' salary during the relevant year and routine expenses, without examining their prior savings or capital accumulation, and the first appellate authority upheld the addition without mandated inquiry, rendering the order arbitrary. It further held that, on these facts, the correct provision, if any, was s. 69A (unexplained money) and not s. 68, showing non-application of mind. The addition was deleted and the appeal was allowed - ITAT
The dominant issue was whether cash deposited by the company's directors and later transferred to the assessee's account for share purchase could be taxed as unexplained credit under s. 68. The Tribunal held that the authorities proceeded on mere suspicion by relying only on the directors' salary during the relevant year and routine expenses, without examining their prior savings or capital accumulation, and the first appellate authority upheld the addition without mandated inquiry, rendering the order arbitrary. It further held that, on these facts, the correct provision, if any, was s. 69A (unexplained money) and not s. 68, showing non-application of mind. The addition was deleted and the appeal was allowed - ITAT
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