Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Territorial nexus limits taxation of a non-resident's foreign bank deposits: amounts held abroad are taxable in India only if received or deemed received in India, or if they accrue/arise or are deemed to accrue/arise in India; Sections 5(2) and 9 cannot be stretched to tax sums outside India. The Revenue bore the burden to prove Indian sourcing of deposits and failed to discharge that onus (ei qui affirmat incumbit probatio), so additions could not be sustained. Re taxing income already subjected to tax in other hands or years is impermissible, supporting deletion of the addition and dismissal of the appeal.
Territorial nexus limits taxation of a non-resident's foreign bank deposits: amounts held abroad are taxable in India only if received or deemed received in India, or if they accrue/arise or are deemed to accrue/arise in India; Sections 5(2) and 9 cannot be stretched to tax sums outside India. The Revenue bore the burden to prove Indian sourcing of deposits and failed to discharge that onus (ei qui affirmat incumbit probatio), so additions could not be sustained. Re taxing income already subjected to tax in other hands or years is impermissible, supporting deletion of the addition and dismissal of the appeal.
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