Pharmaceutical promotion and transfer-pricing comparability principles limited disallowances, while uncorroborated search allegations and unsupported ...
Business expenditure substantiation supports scrap credits, statutory payments and expense claims, while depreciation requires proof of actual busines...
Under FEMA, pre-deposit of penalty is the rule and waiver is an exception available only on proof of undue hardship, with protective conditions for recovery. The Tribunal had already exercised that discretion by granting substantial relief, and the High Court found no clear prima facie case for total waiver, as the petitioners' own case showed awareness that the remittances attracted FEMA. It also held that no perversity, unreasonableness or non-application of mind was shown in the hardship assessment, and that supervisory jurisdiction under Article 227 cannot be used to reappreciate the Tribunal's discretion. The Tribunal's order was therefore upheld in principle, with only the immediate cash pre-deposit reduced to 5% and the balance to be secured by bank guarantee or surety.
Under FEMA, pre-deposit of penalty is the rule and waiver is an exception available only on proof of undue hardship, with protective conditions for recovery. The Tribunal had already exercised that discretion by granting substantial relief, and the High Court found no clear prima facie case for total waiver, as the petitioners' own case showed awareness that the remittances attracted FEMA. It also held that no perversity, unreasonableness or non-application of mind was shown in the hardship assessment, and that supervisory jurisdiction under Article 227 cannot be used to reappreciate the Tribunal's discretion. The Tribunal's order was therefore upheld in principle, with only the immediate cash pre-deposit reduced to 5% and the balance to be secured by bank guarantee or surety.
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