Committee of Creditors - separate legal existence and representation through Resolution Professional - Impleadment of Committee of Creditors in challenge to financial creditor's authority Whether Committee of Creditors' capacity to seek impleadment in proceedings confined to the authority of a financial creditor to represent lenders in the Committee of Creditors? - HELD THAT: - The Committee of Creditors is a statutory creation constituted to perform functions assigned under the Code,... ... ...

Limited operation of observations supporting appointment of statutory auditor - Effect of observations concerning the unimplemented EGM decision and the expiry of additional directors' terms, made while appointing a statutory auditor for preparation of the company's financial statements HELD THAT: - The observations in the impugned order were confined to justifying the appointment of the statutory auditor for completing the financial statements. They were not to operate to the appella... ... ...

Unexplained cash deposits - proof of source by affidavits Addition for cash deposits used in share transactions, where the assessee explained the source as cash received from friends and relatives and produced their sworn affidavits - HELD THAT: - The affidavits could not be rejected as non-genuine merely because they were similarly worded, executed on the same date, or obtained long after the transactions. The necessity of obtaining such affidavits arose upon scrutiny, and, in the absence of... ... ...

Limitation for filing first appeal - Cash deposits during demonetisation-source from prior bank withdrawals Limitation for filing first appeal - Timeliness of the appeal filed before the first appellate authority - HELD THAT: - The material showed that the assessment order was received by the assessee and the appeal was electronically filed within the prescribed period of 30 days. The finding that the appeal was delayed was therefore unsustainable. [Paras 5] The appeal before the first app... ... ...

Bogus purchases - Estimation of disallowance for unverifiable purchases of plastic waste and pet scrap - HELD THAT: - The assessee had not properly explained the purchases, but the Department could not disregard all relevant evidence outright. In the peculiar facts, disallowance of the entire purchases was not justified and an estimated disallowance was warranted in the interest of justice. [Paras 5] The disallowance was restricted to 15% of the purchases. Final Conclusion: The appeal was ... ... ...

Deductibility of employees' contributions to ESIC/PF paid beyond statutory due date HELD THAT: - Following the Supreme Court precedent, Checkmate Services Pvt. Ltd [2022 (10) TMI 617 - SUPREME COURT (LB)] the Tribunal held that employees' contributions to ESIC/PF paid after the statutory due date are not allowable as a deduction. [Paras 3] The disallowance was sustained and the assessee's appeal was dismissed. Final Conclusion: The Tribunal upheld the disallowance of employe... ... ...

Unexplained cash deposits during demonetisation - Prospective applicability of Section 115BBE to unexplained income - Estimation of business profits from unaudited accounts Unexplained cash deposits during demonetisation - Addition for cash deposits made during the demonetisation period as unexplained cash credits - HELD THAT: - The assessee failed to properly explain the source of the cash deposits, while the Department could not disregard all the material produced by the assessee. In the pe... ... ...

Taxability of development-agreement transaction executed by a partnership firm - Additional evidence under rule 46A Taxability of development-agreement transaction executed by a partnership firm - Representative capacity of managing partner - Taxability in the individual hands of a managing partner who signed a development agreement on behalf of the partnership firm - HELD THAT: - The development agreement was entered into by the partnership firm as developer, and the assessee had signed it o... ... ...

Disallowance for short deduction of tax at source on commission and advertisement-space payments - Rejection of audited books and net-profit estimation after changed manpower-supply arrangement Short deduction of tax at source - Disallowance under section 40(a)(ia) - Disallowance of commission and hired advertisement-space payments for short deduction of tax at source under section 40(a)(ia) - HELD THAT: - Section 40(a)(ia) distinguishes non-deduction of tax from a shortfall caused by deducti... ... ...

Ex parte assessment - reasonable opportunity of hearing - adjudication of additions and disallowances sustained in an ex parte assessment where the assessee had not made effective compliance before the lower authorities HELD THAT: - Although the assessee had remained non-compliant before the lower authorities and was unrepresented before the Tribunal, the Tribunal considered it appropriate, in the interest of justice, to afford one further opportunity to present its case. [Paras 4] The mat... ... ...

Prior approval u/s 153D for each assessment year - approval u/s 153D was received after the assessment order was passed and was granted as a consolidated approval for several assessment years HELD THAT: - Adopting the reasoning in the assessee's own earlier case [2025 (3) TMI 1374 - ITAT DELHI], the Tribunal held that approval under section 153D must be prior to the assessment order and must reflect independent application of mind for each assessment year. The consolidated approval was re... ... ...

Substantive additions in respect of the same alleged undisclosed income - addition concerning alleged undisclosed income arising from share-capital transactions, where a substantive addition had been made in the hands of the other party to the transactions HELD THAT: - Accepting the stated position that the appellate decision in the other party's case, in which the alleged undisclosed income had been added, had attained finality, the Tribunal held that deletion of the corresponding additi... ... ...

Double addition of receipts reflected in Form 26AS under a surrendered PAN Addition of contract receipts and interest income reflected in Form 26AS under the surrendered PAN following amalgamation - HELD THAT: - The factual finding that the former PAN had been surrendered upon amalgamation, and that the receipts reflected against that PAN had already been accounted for in the return filed under the active PAN, remained uncontroverted by the Revenue. The proposed addition would therefore amoun... ... ...

Assessment u/s 153A - Search assessments - completed assessments without incriminating material Sustainability of additions for unsecured loans, related interest expenditure and delayed employees' PF/ESI contributions in completed assessments u/s 153A without incriminating material found during search - HELD THAT: - The original assessments had attained finality, as no notice under section 143(2) had been issued within the prescribed time and no assessment or reassessment proceeding was p... ... ...

Net-profit estimation of civil contractor's income on gross receipts - Consideration of depreciation and scrap sales in estimated income - Estimation of the civil contractor's income by applying an 8% net-profit rate on gross receipts, including scrap sales, without adequate consideration of relevant factors - HELD THAT: - Though the assessment was completed ex parte, the application of the net-profit rate on gross turnover, including scrap sales, had not adequately considered the pas... ... ...

Reassessment beyond four years - failure to disclose fully and truly material facts Validity of reassessment concerning unexplained capital, capital-asset expenditure and interest on partners' personal withdrawals, after completion of a scrutiny assessment, in the absence of failure to disclose fully and truly all material facts - HELD THAT: - Where an assessment has been completed under section 143(3), reopening beyond four years is impermissible unless the escapement of income is attrib... ... ...

Estimation of business income from contract receipts - Penalty for estimated contract income u/s 271(1)(c) - absence of deliberate concealment Estimation of business income from contract receipts - Estimation of income from contract receipts where the nature, source and genuineness of the receipts were accepted but the profit margin was disputed - HELD THAT: - The estimation of profit on gross contract receipts must have a reasonable basis. The estimation at 50 per cent was held unreasonable;... ... ...

Penalty for estimated profit addition on alleged bogus purchases - Monetary-limit exception for organized tax evasion appeals Penalty u/s 271(1)(c) for estimated profit addition on alleged bogus purchases - Concealment or furnishing of inaccurate particulars - HELD THAT: - The books were rejected and the addition represented an estimate of profit embedded in the alleged non-genuine purchases. As the Revenue produced no material establishing concealment of income or furnishing of inaccurate pa... ... ...

Unexplained cash credit - sale proceeds of preferentially allotted penny-stock shares - Human probabilities - uncontroverted documentary evidence Validity of the assessment founded on statements of alleged operators which were not supplied to the assessee and in respect of which effective cross-examination was not allowed - HELD THAT: - The assessment relied upon statements of alleged operators, but their copies were not furnished and effective cross-examination was not granted. Such reliance... ... ...

External development charges - TDS as rent u/s 194I or 194C Liability to deduct tax at source on external development charges paid to HUDA as rent - HELD THAT: - The question stood squarely covered in favour of the assessee by an earlier decision of the Court in DLF Homes Panchkula Pvt. Ltd. [2023 (4) TMI 399 - DELHI HIGH COURT] holding that external development charges were not rent attracting tax deduction at source under section 194I. The Revenue had founded the impugned default order on s... ... ...