The IBBI (Liquidation Process) (Second Amendment) Regulations, 2025 did not apply to a going-concern sale process where liquidation had commenced before the amendment took effect. A liquidation order recording the creditors' recommendation that the liquidator explore sale of the corporate debtor as a going concern established the governing legal framework on the liquidation commencement date. The subsequent auction constituted implementation of that existing liquidation process rather than commencement of a fresh process. Absent retrospective operation, later regulations could not alter rights and obligations already governed by the earlier liquidation framework. The challenged order was set aside and the matter remitted to consider reliefs and concessions according to law.

Forensic audit reports supported by sale deeds, bank records, registration records and title-verification material can carry evidentiary weight in determining fraudulent transactions, although they are not conclusive alone. Where a liquidator produces reliable documentary audit material, former management with special knowledge must provide cogent rebuttal evidence. Overvalued property purchases, unsupported cash payments and expenses, retained vendor possession or rents, incomplete title measures, subsisting encumbrances, and loan proceeds rapidly routed back to the corporate debtor or related entities indicate accommodation and round-tripping arrangements. Such conduct supports fraudulent-transaction findings and contribution liability to the corporate debtor under insolvency law.

Declared CIF transaction value remains the primary customs valuation basis unless cogent, objective evidence shows that the invoice price excludes additional consideration actually paid or payable by the importer. Freight and insurance cannot be added where they are already included in CIF pricing and no reimbursement liability is established. Upstream FOB invoices from a separate foreign transaction and Non-GMO compliance certificates do not, without comparable-import data or proof of omitted consideration, displace the importer's declared transaction value. Extended limitation requires collusion, wilful misstatement, or intentional suppression; a disclosed valuation-methodology dispute does not suffice. Without sustainable value misdeclaration and extended-period duty liability, confiscation, redemption fine, and related penalties lack foundation.

Section 123's reverse burden applies only to specified or notified goods and does not extend to Indian currency; the Revenue must therefore prove that currency represents sale proceeds of smuggled goods. Confiscation under section 121 requires proof of identified smuggled goods, a sale by a person with the requisite knowledge, and a direct, identifiable evidentiary nexus between that sale and the seized currency. Suspicion or unexplained cash is insufficient. Penalties under section 112 require identified goods liable to confiscation and proven knowing conduct concerning those goods. Remand cannot cure a fundamentally deficient evidentiary foundation by allowing new facts or links absent from the show cause notice.

Refund limitation for duty paid under provisional assessment begins when the final assessment order is communicated to the person entitled to claim the refund, not merely when the order is made. Section 27(1B)(c) of the Customs Act must operate consistently with the principle that a remedy cannot become time-barred before the affected person has actual or constructive knowledge of the order. Valid communication requires service through prescribed modes under Section 153; mere despatch without proof of delivery is insufficient. Revenue bears the burden of proving service. Receipt on 10.06.2014 was established, so the refund claim filed within one year was timely.

Port-service classification addresses whether storage and warehousing performed by a storage or warehouse keeper, including incidental or ancillary services, constitutes a taxable service. The legal issues include treating a composite activity as separable components for classification and identifying the proper appellate forum for a classification dispute. Procedural treatment of an exceptionally delayed civil appeal, founded on an asserted jurisdictional misconception, is also addressed.

Imported PCC Lime 0/20MM, described as quicklime, raises a customs tariff classification issue between Chapter Sub-Heading 2522 1000 and Chapter Sub-Heading 2825 9090. The classification turns on whether the product falls within the tariff treatment for lime under Chapter 25 or is to be treated as a chemical product under Chapter 28. The central legal point is the proper application of Customs Tariff headings to the imported product's stated identity and characteristics.

Pending Mutual Agreement Procedure proceedings must be considered when an assessee seeks abeyance of first appellate proceedings. The first appellate authority must address the request, record reasons for accepting or rejecting it, and provide an effective opportunity to present substantive grounds. Disposal without considering the MAP-abeyance plea or adequately adjudicating the merits breaches procedural fairness. Transfer-pricing adjustments, disallowance and computational issues remain open for fresh consideration by the competent appellate authority after reasonable hearing.

Penalty for a charitable trust's failure to furnish a return under section 272A(2)(e) runs only until the last date for voluntary filing under section 139(4). The return obligation under section 139(4A) can be voluntarily discharged only within the period permitted by section 139, including the belated-return period. Once that period expires, voluntary compliance is legally unavailable. A return furnished following a section 148 notice follows an independent statutory mechanism and does not extend the period of continuing default. Penalty therefore cannot be computed up to the date of filing the return in response to section 148.

TDS credit reflected in a deductee's Form 26AS remains allowable to that deductee under Section 199 and Rule 37BA(1), even where fixed-deposit interest is clubbed in the spouse's income under Section 64. Rule 37BA(2)(i) permits credit to be transferred only when the deductee furnishes the prescribed declaration to the deductor and the deductor reports the deduction in the other person's name. In the absence of that process, clubbing does not displace the deductee's entitlement to the recorded credit. The claimed credit requires factual verification and redetermination against the correct TDS amount.

Timely revised returns filed within the period prescribed under Section 139(5) must be considered where they correct an omission or wrong statement in an original return. Eligible derivative transactions undertaken on a recognised stock exchange fall outside speculative transactions under the proviso to Section 43(5). Reclassifying an already disclosed futures and options loss from speculative loss to non-speculative business loss does not introduce a fresh loss or new claim; it corrects its character and consequential set-off and carry-forward computation. Principles governing change of opinion in reassessment do not restrict the statutory right to file a revised return.

Interest expenditure on borrowings used for business purposes is deductible under Section 36(1)(iii), subject to the proviso restricting deduction until an acquired asset is first put to use. Open land used as a storage yard for bulky trading stock was supported by delivery, unloading, electricity and photographic evidence. Capital work-in-progress for an additional structure on part of the land did not negate business use of the remaining area. Where no borrowing or interest amount is directly attributable to incomplete construction, and capital plus interest-free loans sufficiently cover the land cost, the investment is presumed to be from interest-free funds. The interest disallowance was therefore deleted.

Under the transactional net margin method, comparability depends on functions performed, assets employed and risks assumed; a turnover threshold alone cannot exclude a comparable without showing a material effect or considering reasonably accurate adjustments. Arm's-length adjustments are confined to international transactions with associated enterprises. Abnormal goodwill amortisation and non-associated-enterprise bad debts and legal expenses are excluded from operating computation, while import-duty adjustment is admissible; capacity-utilisation and working-capital claims require verification. Warranty, replacement costs and written-off bad debts are deductible on consistent facts. Reversal and write-back claims require reconciliation with earlier tax treatment, while doubtful advances may be claimed at the appellate stage. Business-right acquisition expenditure is revenue in nature despite possible enduring benefit, and capitalised software qualifies for 60% depreciation.

Section 56(2)(x) permits the stamp duty value on the agreement date to determine the taxable difference on purchase of immovable property when the agreement and registration dates differ, provided consideration or part consideration is paid through prescribed banking channels on or before the agreement date. Where the agreement-date stamp duty value equals the stated consideration, a higher stamp duty value prevailing on the subsequent conveyance date need not be adopted. The resulting addition based on the conveyance-date value was deleted.

Section 68 treatment of an outstanding trade-creditor balance requires verification where purchases, corresponding sales and stock are accepted and additional evidence supports the creditor's identity and genuineness. Confirmation, ledgers, invoices, banking records, GST registration, tax returns, and evidence concerning destroyed records were admitted for fresh verification; no addition is to be made if the evidence is discrepancy-free. Tax deduction on purchases is not required twice where the seller has already collected tax at source before the buyer could deduct it. Consequently, disallowance for non-deduction of tax on those purchase payments cannot survive.

The collaborator's contractual share of flat-sale proceeds did not accrue as the assessee's taxable income because the collaboration agreement imposed an overriding obligation, supported by banking records, ledger accounts and evidence that the collaborator funded construction. Alleged irregularities in the agreement did not establish a diversion device. The land-acquisition addition was also unsustainable because the books of account and registered purchase deed evidenced both acquisition and recording of the land, leaving no factual basis to treat its cost as sourced from unexplained funds.

Reassessment notices for Assessment Year 2015-16 were time-barred under the Revenue's concession recorded in binding Supreme Court decisions. As the notice related to that assessment year, it could not survive limitation. The assessment framed pursuant to the invalid notice was quashed in favour of the assessee.

Penalty for concealment or furnishing inaccurate particulars cannot survive where the quantum addition forming its sole basis is deleted. The original assessment's addition for alleged bogus purchases was set aside, and the Assessing Officer accepted the explanation in the fresh assessment and deleted the addition entirely. As the penalty rested exclusively on that addition, its foundation ceased to exist, requiring deletion of the penalty.

Contract expenditure cannot be subjected to an ad hoc 30% disallowance solely because payees failed to respond to notices under Section 133(6) or had not filed income-tax returns, where the services rendered are not in doubt. In the absence of a stated basis for the higher disallowance, the disallowance was restricted to 5%, with the remaining amount deleted.

Transfer-pricing adjustment for the relevant assessment year requires reconsideration where the same issue, facts and grounds were examined in the succeeding year. Verification of transfer-pricing documentation and economic analysis in that year, following remand, resulted in no adverse arm's-length price inference. Appropriate relief is to be granted by the Assessing Officer/Transfer Pricing Officer consistently with the succeeding-year determination.