Penny-stock additions require transaction-specific evidence; general investigation material alone cannot establish undisclosed income or accommodation...
Transfer pricing comparability prioritises reliable external CUPs and foreign-currency LIBOR benchmarks for exports, borrowings and delayed receivable...
Section 153C satisfaction and seized electronic records sustained unexplained-investment addition, subject to proportionate ownership-share verificati...
Clause 4.1 of the 2024 RBI Master Directions and Footnote 14 were held to govern eligibility and independence of an external forensic auditor, and could not be treated as merely prospective because they reflect the requirement that only auditors qualified under relevant statutes conduct such audits. Since the appointed auditor had an admitted continuing consultancy relationship with lender banks, a conflict of interest arose, undermining the bedrock requirement of forensic independence; consequently, the appointment and actions founded on that audit were found prima facie dubitable. Further, the audit report was signed by a non-CA and the firm's CA partners were not registered with ICAI, rendering the appointment untenable, and the gross delay in submission breached RBI timelines, justifying interim protection to prevent grave irreparable harm; the suit was allowed. - HC
Clause 4.1 of the 2024 RBI Master Directions and Footnote 14 were held to govern eligibility and independence of an external forensic auditor, and could not be treated as merely prospective because they reflect the requirement that only auditors qualified under relevant statutes conduct such audits. Since the appointed auditor had an admitted continuing consultancy relationship with lender banks, a conflict of interest arose, undermining the bedrock requirement of forensic independence; consequently, the appointment and actions founded on that audit were found prima facie dubitable. Further, the audit report was signed by a non-CA and the firm's CA partners were not registered with ICAI, rendering the appointment untenable, and the gross delay in submission breached RBI timelines, justifying interim protection to prevent grave irreparable harm; the suit was allowed. - HC
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