Attachment and proclamation of sale of immovable property: limitation treated from financial year end; proclamation held within period, petition dismi...
Second Schedule attachment and validity of a post-notice mortgage: TRO cannot declare mortgage void ab initio; sale and appropriation allowed thereaft...
Limitation for final assessment under sections 144C and 153 treated jointly, resulting in quashing of timebarred assessment order and liberty to reviv...
Deductibility of settlement payments for securities law penalties and treatment of unexplained cash credits in share trading -- Tribunal upholds posit...
Threshold for allottee-initiated insolvency petitions in leasehold real estate upheld; petition admitted after possession letters deemed legally ineff...
Contravention of foreign exchange rules in crossborder diamond payments; appellate tribunal reduces one appellant's penalty for delay and proportional...
Section 80-IA(10) can curtail a deduction only where there is a close connection, an arrangement between the parties, and that arrangement produces more than ordinary profits. The Court held that extraordinary profits alone do not prove such an arrangement, and the Tribunal had not recorded a categorical finding of one. It further found that comparing a 100% export-oriented unit with a domestic sister concern was legally unsustainable because statutory benefits and cost structures differed materially, so no proper benchmark of ordinary profit was made. The restriction of the Section 10B deduction on the sister concern's profit margin was therefore quashed and the appeal allowed.
Section 80-IA(10) can curtail a deduction only where there is a close connection, an arrangement between the parties, and that arrangement produces more than ordinary profits. The Court held that extraordinary profits alone do not prove such an arrangement, and the Tribunal had not recorded a categorical finding of one. It further found that comparing a 100% export-oriented unit with a domestic sister concern was legally unsustainable because statutory benefits and cost structures differed materially, so no proper benchmark of ordinary profit was made. The restriction of the Section 10B deduction on the sister concern's profit margin was therefore quashed and the appeal allowed.
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