Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
Addition under section 40A(2)(b) challenged as based solely on a statement under section 132(4). The tribunal found the assessing officer relied on a misattributed statement (it belonged to a different declarant) and, following precedent that uncorroborated admissions during search cannot alone support assessments, held such statements do not justify additions absent independent evidence - consequence: the addition could not be sustained. Further, the recipient had declared the remuneration and comparative tax consequence showed no tax avoidance motive - consequence: deduction disallowed by AO was deleted and the appeal allowed. - ITAT
Addition under section 40A(2)(b) challenged as based solely on a statement under section 132(4). The tribunal found the assessing officer relied on a misattributed statement (it belonged to a different declarant) and, following precedent that uncorroborated admissions during search cannot alone support assessments, held such statements do not justify additions absent independent evidence - consequence: the addition could not be sustained. Further, the recipient had declared the remuneration and comparative tax consequence showed no tax avoidance motive - consequence: deduction disallowed by AO was deleted and the appeal allowed. - ITAT
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