Penalty u/s 271D for cash acceptance as loan or deposit - Reasonable cause for cash received by property-sale mediator Levy of penalty for cash received and bank-routed by the assessee while acting as a mediator in a property transaction between relatives - HELD THAT: - On considering the documents and evidence produced, the Tribunal accepted that the assessee acted only as a mediator. The cash transaction did not constitute acceptance of a loan or deposit within the meaning of section 269SS;... ... ...

Limitation for final assessment upon electronic receipt of DRP directions - Validity of the final assessment on the ground that it was completed beyond the period prescribed after electronic upload of the DRP directions HELD THAT: - The DRP directions were uploaded on the DRP module in ITBA on 29.09.2021. In the faceless assessment process, such upload was treated as the relevant event for receipt of the directions; consequently, the assessment was required to be completed by 31.10.2021 under... ... ...

Fixed place permanent establishment - premises at the disposal of foreign enterprise - Dependent agency permanent establishment - independent subsidiary Fixed place permanent establishment - premises at the disposal of foreign enterprise - information contained in Form 10- K relied upon - Existence of a fixed place permanent establishment in India through the Indian subsidiary's premises in respect of offshore supplies of machinery, raw material and finished goods - HELD THAT: - The onus ... ... ...

Statutory reversal of input tax credit on unsold units upon project completion - business expenditure under section 37(1) - Deductibility of irrecoverable GST credit as construction cost - Year of allowability of GST reversal provision Statutory reversal of input tax credit on unsold units upon project completion - Deductibility of irrecoverable GST credit as construction cost - Deductibility of GST input tax credit mandatorily reversed on unsold units upon receipt of Building Use Permission ... ... ...

Deduction u/s 80P(2)(a)(i) for interest income of a credit co-operative society - Entitlement of a co-operative society providing credit facilities to its members to deduction under section 80P(2)(a)(i) in respect of its interest and other income - HELD THAT: - Deduction under section 80P(2)(a)(i) extends to the whole income attributable to the activity of providing credit facilities to members. The assessee's claim was confined to that provision. The Tribunal applied the Karnataka High C... ... ...

Rebate under section 87A on long-term capital gains taxable under section 112 - Prospective restriction on rebate for special-rate income Entitlement to rebate under section 87A on long-term capital gains taxable at the special rate under section 112, where the resident individual had opted for the new tax regime and the total income was within the prescribed threshold - HELD THAT: - Long-term capital gains taxable under section 112 form part of the assessee's total income and could not b... ... ...

Deductibility of expenditure after setting up of a business division - Consideration of contemporaneous evidence in appellate proceedings Consideration of material evidence by appellate authority - Sustainability of the appellate finding without consideration of the assessee's written submissions and contemporaneous Annual Report concerning the Bio-Pharma Division - HELD THAT: - An appellate authority must examine the evidence and submissions placed before it and render a reasoned finding... ... ...

Accepted Income Declaration Scheme declaration as evidence of source of share-capital credits - Share-capital credits - scope of onus before source-of-source proviso - Reassessment-reason to believe based on search statement Unexplained cash credit - share capital and share premium - Accepted Income Declaration Scheme declaration as evidence of source - Explanation of share-capital and share-premium credits by an accepted income declaration and a direct disclosed investment - HELD THAT: - The... ... ...

Mandatory notice under section 143(2) in reassessment - Prospective application of third proviso to section 148 Validity of reassessment where no notice under section 143(2) was issued after a return was filed pursuant to a notice under section 148 issued before the third proviso to section 148 came into force - HELD THAT: - The statutory consequence under the third proviso to section 148, by which a belated return ceases to be deemed a return under section 139, could not be invoked for a not... ... ...

Deduction of brokerage in computation of capital gains - Cost of improvement of transferred residential property - Capital-gains exemption - mandatory residents' association corpus contribution - Proof of improvement expenditure for capital-gains exemption - Condonation of delay - bona fide pursuit of rectification remedy Condonation of delay - bona fide pursuit of rectification remedy - Condonation of delay in filing the appeal where the assessee had bona fide pursued rectification of th... ... ...

Applicability of draft assessment procedure to pre-insertion assessment year - Limitation for fresh assessment after appellate remand Applicability of draft assessment procedure to pre-insertion assessment year - Applicability of the draft assessment procedure to A.Y. 2007-08 where the variation in returned income was proposed after 01.10.2009 - HELD THAT: - The decisive statutory event was the proposal of variation in the returned income and not the assessment year alone. As the draft assess... ... ...

On-money receipts from sale of land - Protective addition without substantive assessment - Rejection of books and estimation of profit on land-transfer receipts - Capital-gains addition on co-owned land - sale consideration already assessed as business income On-money addition based on seized documents - Addition for alleged on-money received from sale of land on the basis of seized documents - HELD THAT: - The seized unsigned draft agreement, one-sided memorandum and subsequent manuscript di... ... ...

Unexplained money represented by seized cash - Onus of proving HUF ownership and source of seized cash - Explanation of nature and source of cash HELD THAT: - The assessee's categorical statement admitting ownership of the cash established that it belonged to him individually. The subsequent HUF claim, raised only in the set-aside proceedings, was not supported by credible evidence connecting the specific seized cash with the HUF business. Documents showing the HUF's proprietorship di... ... ...

Validity of reassessment based on search material - Statutory sanction for reassessment notice - Independent application of mind in approval of reassessment order - Estimation of profit from unaccounted real-estate business receipts - Set-off of business loss against search-related undisclosed income Reassessment notice based on search material - Statutory sanction for reassessment - Validity of the reassessment notice issued on the basis of search material and after obtaining statutory sanct... ... ...

Penalty u/s 271(1)(c) - disallowance depreciation and loss set-off claims - Concealment of income or furnishing inaccurate particulars - Incorrect claim and inaccurate particulars of income HELD THAT: - Penalty for concealment or furnishing inaccurate particulars requires a definite finding to that effect. Mere rejection of a claim, without material establishing that the claim did not relate to the expenses incurred, does not warrant penalty; an incorrect claim does not by itself amount to fu... ... ...

Agreement-date stamp-duty valuation of immovable property - Non-cash payment of consideration before agreement - Addition u/s 56(2)(vii)(b) on acquisition of immovable property pursuant to an earlier agreement followed by a later registered sale deed HELD THAT: - Where the agreement fixing consideration and registration of transfer occur on different dates, the first and second provisos to section 56(2)(vii)(b) require adoption of the stamp value as on the agreement date, provided that whole ... ... ...

Reassessment - mere change of opinion - Validity of reopening a completed scrutiny assessment concerning exempt long-term capital gain from sale of shares of Safal Herbal Ltd., where the relevant transaction material had been furnished and examined in the original assessment - HELD THAT: - The original scrutiny assessment had examined the exemption claim on share sales, made an adverse determination only in respect of another scrip, and accepted the claim relating to Safal Herbal Ltd. The contra... ... ...

Post-search reassessment u/s 148 - Jurisdictional defect in scrutiny assessment Validity of a scrutiny assessment u/s 143(3) after a search initiated on or after 1 April 2021 - HELD THAT: - Explanation 2(i) to section 148 deems a post-1 April 2021 search to furnish information suggesting escapement of income. The Assessing Officer was therefore required to discontinue the scrutiny proceedings and initiate proceedings under section 148; completion of assessment under section 143(3) contrary to... ... ...

Penalty for cash repayment of deposits - Reasonable cause for contravention - Validity of penalty for cash repayment of amounts claimed to be chit bid payments, allegedly in contravention of section 269T HELD THAT: - The assessee had neither denied the contravention nor established any reasonable cause in the proceedings before the lower authorities. Its subsequent plea that the repaid amounts were chit bid amounts paid to successful bidders remained unsupported by evidence. No compelling cir... ... ...

Delegation of gross-profit determination on disputed purchases - Penalty for furnishing inaccurate particulars - disclosed bad-debt write-off - Penalty for furnishing inaccurate particulars - unpaid interest and tax-audit error Delegation of gross-profit determination on disputed purchases - Validity of the direction to apply an unspecified gross-profit percentage to disputed purchases after holding the unexplained-expenditure provision inapplicable - HELD THAT: - Having held that the provisi... ... ...