Condonation of Delay: directoral disputes and pending company proceedings can constitute reasonable cause, allowing a belated return to be treated as ...
Revisionary jurisdiction under section 263 upheld; faceless assessments subject to revision when AO fails requisite enquiries, remitted for fresh asse...
Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
Contemporaneous documentary evidence showing preferential allotment/allotment letters, demat holdings, exchange contract notes, STT payment and banked sale proceeds defeats treatment of receipts as unexplained credit and related commission additions where the tax authority lacks fresh, year specific tangible material linking the transactions to third party entry operators. The legal principle applied requires the assessing officer to bring year relevant evidence of collusion or nexus to sustain a finding of sham or accommodation entries; prior year suspicions or third party statements recorded before the sales are insufficient. Consequently, additions treating genuine share purchases and sales as bogus were reversed for the year under appeal.
Contemporaneous documentary evidence showing preferential allotment/allotment letters, demat holdings, exchange contract notes, STT payment and banked sale proceeds defeats treatment of receipts as unexplained credit and related commission additions where the tax authority lacks fresh, year specific tangible material linking the transactions to third party entry operators. The legal principle applied requires the assessing officer to bring year relevant evidence of collusion or nexus to sustain a finding of sham or accommodation entries; prior year suspicions or third party statements recorded before the sales are insufficient. Consequently, additions treating genuine share purchases and sales as bogus were reversed for the year under appeal.
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