SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER For the Assessee : Mr Prateek Jha ['Ld. AR'] For the Revenue : Mr Keyur Patel ['Ld. DR'] ORDER PER G. D. PADMAHSHALI, AM; The present appeal challenges DIN & Order No. ITBA/REV/F/REV5/2020 21/1030289177(1) dt. 02/02/2021 of Principle Commissioner of Income Tax-Central Pune, passed u/s 263 of the Income-tax Act, 1961 [for short 'the Act']. 2. We have heard rival contention of both the partie... ... ...

This is a neutral professional article. The judgment is analysed in the context of its factual background, issues framed, and conclusions reached by the Court. 2026 (6) TMI 987 - ITAT MUMBAI 1. At a Glance • Article 12(4) of the India-Singapore DTAA does not treat every managerial, technical or consultancy service as fees for technical services. • The service must additionally satisfy at least one of the treaty gateways: it must be ancillary and subsidiary to a royalty pa... ... ...

Foreign tax credit for foreign employment income taxed in India and Malaysia remains available where foreign taxes paid and treaty entitlement are otherwise established. Delayed filing of the prescribed foreign tax credit form and supporting proof does not, by itself, extinguish double taxation relief. The filing deadline operates as a technical procedural requirement and cannot defeat a substantiated entitlement to credit under the applicable tax treaty.

Substance over form prevents transactions of an individual's proprietary business from being attributed to a partnership firm solely because the firm's PAN was incorrectly mapped to the business bank accounts during KYC updating. Bank confirmations, GST records, returns, financial statements and purchase records may establish the actual proprietor and the firm's lack of involvement. Such erroneously reported transactions cannot be assessed as the firm's income or turnover.

Contingent liability - performance bank guarantees not claimed as expenditure - Additional evidence-material already forming part of assessment record Prima facie adjustment of unclaimed contingent liability - Performance bank guarantees - Validity of the adjustment treating performance bank guarantees, disclosed as contingent liabilities but not debited to the profit and loss account, as disallowable expenditure - HELD THAT: - The return, audit report and computation showed that the bank gua... ... ...

Reassessment beyond three years - sanction by the specified authority Validity of reassessment initiated beyond three years for disallowance of deduction claimed for a donation to a political party, where approval was granted by the PCIT instead of the Principal Chief Commissioner or Chief Commissioner - HELD THAT: - Where more than three years have elapsed from the end of the relevant assessment year, section 151(ii) requires sanction by the specified authority, namely the Principal Chief Co... ... ...

Suppressed sales - taxability of gross profit element Taxability of differences in sales reflected in the live billing and backup databases of the retail-garment business as entire income or only as the gross profit embedded therein - HELD THAT: - Sales constitute gross trading receipts comprising the cost of goods and the profit margin and cannot, without proof of a wholly profit-bearing transaction, be equated with income. The sales manipulation was confined to the sales tables; matching in... ... ...

Applicability of the COVID-19 exclusion of limitation period to the statutory time limit for completing a final assessment after DRP directions - HELD THAT: - The Department was required to complete the final assessment within the time prescribed by the Income-tax Act. COVID-19 exclusion of limitation period did not apply to statutory assessment proceedings undertaken by the Department. Consequently, the earlier order quashing the final assessment as time-barred did not warrant recall. [Paras... ... ...

Under the pre-restriction statutory formulation, a resident individual taxable under section 115BAC(1A) and within the prescribed total-income ceiling is analysed as eligible for section 87A rebate against income-tax on total income, including tax on qualifying short-term capital gains under section 111A. Section 111A fixes the special-rate computation but contains no express rebate exclusion. The explicit exclusion for specified long-term gains in section 112A(6) supports this distinction. Later limiting language in section 87A must be applied according to the statutory period concerned.

Extended limitation under section 149(1)(b) may operate where books, documents or evidence reveal escaped income meeting the prescribed monetary threshold and represented as an asset, qualifying expenditure, or entries in books of account. These categories operate disjunctively; qualifying book entries may therefore provide an independent jurisdictional basis without resolving whether cash entries are assets. Handwritten and digital records may be treated as books where possession, control, corroboration, and attribution establish their nexus with the taxpayer.

Favourable testing by an accredited laboratory required release of the detained goods despite the department's pending appeal. Earlier directions for representative sampling and laboratory testing had attained finality because no appeal was filed against them. A proposed referral test could not justify continued withholding of the goods or negate those directions. The High Court required release within 48 hours and issuance of a detention certificate for the entire detention period until release.

Under the former reassessment framework, the time or extended time allowed for responding to a Section 148A(b) show-cause notice is excluded when computing limitation for the consequential notice. If the period remaining immediately after that exclusion does not exceed seven days, the sixth proviso supplies a seven-day residual period. The Section 148A(d) order and reassessment notice form a linked statutory sequence and must be completed within the resulting limitation period.

For restaurant services supplied through e-commerce operators, the operator pays GST under section 9(5), including where the restaurant is unregistered. Tax must be discharged entirely in cash, without using input tax credit. The operator need not collect tax at source or file GSTR-8 for these supplies, but tax collection at source continues for supplies not notified under section 9(5). Operators issue restaurant-service invoices and report the supplies in GST returns; registered restaurants include the value in aggregate turnover and make specified return disclosures.

Mandatory representative sampling of seized ganja requires records to identify source packets, show sampling from each packet or prior homogenisation, and document prescribed sample quantities. Standing Order No. 1/89 also requires sampling in the presence of witnesses and the person from whom the substance was recovered. Material non-compliance may justify an adverse inference against the prosecution and support release on bail where seizure records do not establish representative sampling.

Section 107(1) of the Act of 2017 made the challenged order appealable through the statutory appellate route, leading to non-entertainment of the writ petitions. The writ petitions were dismissed, while petitioners remained free to raise all questions in appeal. The appellate authority is to consider and decide those questions expeditiously in accordance with law.

Ganja under the NDPS Act comprises only flowering or fruiting tops of the cannabis plant, excluding seeds and leaves unless accompanied by such tops. Where seized material includes leaves, seeds and stalks without separate quantification of qualifying tops or prima facie proof that excluded components were accompanied by them, commercial quantity under Section 20(c) remains doubtful. Mixing material from two separately seized bags before drawing samples also prevents the forensic sample from reliably representing each bag's contents. These deficiencies can support bail by creating prima facie doubt about commercial quantity and the reliability of sampling.

Section 44 of the PMLA removes committal to the Special Court but does not exclude the criminal complaint procedure incorporated through Sections 46 and 65. Section 71 gives priority to the PMLA only where an actual inconsistency exists. Where the BNSS governs cognizance, the first proviso to Section 223(1) requires a meaningful hearing for the proposed accused before cognizance. The safeguard is distinct from exemptions from complainant examination, is mandatory and substantive, and permits submissions on legal sufficiency and prima facie material without converting the stage into a merits trial.

GST adjudication resulted in an order after the company did not respond to the show-cause notice or participate in the personal hearing. Following expiry of the appeal limitation, a rectification application was filed and remains pending. The issue concerns recourse during pendency of rectification where the show-cause notice is alleged to be vague and to contain repeated demands on the same issues.

Late-filing charges for Bills of Entry are calculated by excluding 4 September 2019 from the delayed-presentation period. The limited exemption applies only to that date and addresses filing difficulties caused by heavy rainfall. Presentation time limits remain governed by section 46 of the Customs Act, 1962, and regulation 4(1) of the Bill of Entry (Forms) Regulations, 2018. The directions operate as a standing order for officers and staff.