Money-laundering proceedings require the existence of proceeds of crime derived from criminal activity relating to a scheduled offence. The notes state that, where allegations against persons arise solely from transactions with an entity that has been finally discharged on the basis that the relevant funds were not proceeds of crime, proceedings against those persons cannot continue. Applying the principle in Vijay Madanlal Choudhary, the HC reportedly quashed the criminal process and rejected-discharge order against the petitioners because the underlying transaction no longer involved proceeds of crime.

Licensing pre-existing technical documentation, know-how and a trademark for vehicle manufacture is characterised as a restricted right to use intellectual property, not consulting engineer service. The engineering nature of the material does not convert an independent licence into consultancy where the foreign provider was not engaged to solve a specific problem, provide advice or perform customised assistance; the demand was therefore unsustainable. For the period before section 66A, reverse-charge liability could not be imposed on an Indian service recipient without statutory authority, and reliance on rules beyond the show cause notice was impermissible. The impugned order was set aside with consequential relief.

Food supplements cannot be classified as proprietary Ayurvedic medicines solely by common parlance or a manufacturer's drug licence. Classification requires both common parlance and authoritative tests, including evidence that the products are intended for diagnosis, treatment or cure. Products purchased under CST registration and sold unchanged as food supplements, without the dealer holding a drug-sale licence, remain taxable under the residuary entry. Chapter IV-A of the Drugs and Cosmetics Act continues to regulate Ayurvedic, Siddha and Unani drugs; exclusion from Chapter IV does not remove sale-licensing requirements. The Tribunal may award costs in tax appeals, as compensatory costs for vexatious litigation are an inherent power not barred by the Act.

Section 39 permits personal recovery of a company's tax dues from a Director only after considering the availability of company assets, whether the person was a Director when the dues arose, and whether non-recovery resulted from negligence, misfeasance or breach of duty. The Director bears the statutory burden of establishing that non-recovery was not attributable to such conduct. Recovery from personal assets requires a hearing and a reasoned order on these matters, while recovery may first be pursued against company assets and subsequently against Directors under the statutory scheme.

Arbitral awards may be annulled under the statutory review framework where the tribunal departs from express contractual requirements, violates equal treatment, or denies a party a full opportunity to respond. Written waiver or modification clauses cannot be displaced by unsubstantiated waiver or estoppel, particularly on an unpleaded basis unsupported by unequivocal conduct. Applying notice requirements to reject one party's counterclaims while excusing the other party's non-compliance breaches natural justice and public policy. A tribunal also cannot treat a Performance Guarantee Test as completed where contractual prerequisite tests have failed; doing so rewrites agreed milestone conditions. These defects are fundamental and non-severable.

A concluded arbitrator appointment under Section 11(6) cannot be reopened on merits through review, as the referral court performs only a limited prima facie examination and substantive jurisdictional issues ordinarily lie with the tribunal. A unilateral and exclusionary appointment procedure may violate neutrality and equality, but its invalid terms are severable where the clause otherwise contains a clear agreement to arbitrate; the substantive arbitration agreement survives for neutral appointment. Joint mandate-extension applications constitute waiver by conduct for procedural non-compliance under Section 4, but cannot waive mandatory arbitrator ineligibility under Section 12(5) without an express written post-dispute agreement. A substitute arbitrator should continue from the interrupted stage.

A BIFR corrigendum could not waive service-tax liability without the respondent-State's adjudicated consent under the Sick Industrial Companies Act. The State's consent extended only to the period for 75% service-tax exemption and did not extinguish tax otherwise payable; BIFR could not sanction a scheme beyond that consent. Although the principal tax amount was deposited, the assessee's temporary relief under the relevant notification, undertaking pending related litigation, and continued claim for exemption indicated no wilful default. Service tax therefore remained enforceable, while interest recovery on the deposited principal was excluded on the stated facts.

Brand marketing and promotional services supplied to overseas group entities do not constitute intermediary services merely because they promote the overseas entities' business. Intermediary status under the Place of Provision of Services Rules, 2012 requires the provider to arrange or facilitate an identifiable main supply between other persons. Marketing agreements denying authority to negotiate or bind overseas entities, an independent-contractor relationship, cost-plus foreign-exchange consideration, and no evidence of services supplied to Indian customers on their behalf supported export treatment for services to AMEU and Bladen. Marketplace services to Indian sellers were supplied independently, with service tax discharged. Classification-based penalties were unsustainable, while accepted liabilities relating to AWS and NV Services remained payable.

Service tax liability cannot be presumed solely from income-tax returns or third-party data. Supporting evidence must establish the specific taxable service rendered, the service recipient, and the consideration attributable to that service. Where the demand identifies neither the alleged service nor proof of its provision, income-tax data alone cannot sustain the demand. On this basis, the service tax demand, along with consequential interest and penalty, was set aside.

Bail under the Prevention of Money Laundering Act requires satisfaction that the accused is not guilty of the alleged offence and is unlikely to commit an offence while on bail. Seizure records, Section 50 statements, shipping documents and links to an exporting entity indicated an active alleged role in transporting and concealing smuggled red sanders through a syndicate connected with proceeds of crime. Framing of charges in the predicate offence is not required before action where the competent officer has material-based reasons to believe that money laundering occurred. Non-cooperation, absconding co-accused and organised activity supported further custody; the bail conditions were not met.

Money-laundering allegations involving a respondent's knowledge of bank deposits and participation in concealing proceeds of crime require trial where the evidentiary record cannot conclusively resolve those disputed facts at the quashing stage. Pre-trial assessment of recovery evidence and the respondent's knowledge improperly determines evidentiary merits that must be tested through adjudication. Quashing of the proceedings was therefore unwarranted, and the allegations must proceed to trial.

Modification of preference-share redemption terms complied with the class-rights variation requirements because identical terms were offered to all preference shareholders and written consent exceeded the prescribed three-fourths threshold; no separate sub-class meeting was required. Interim asset-preservation relief must be ancillary to and support the final relief claimed in the suit. As the suit challenged the annual general meeting resolution while the application sought restraints on dealing with assets, the requested protection was not sustainable. Earlier interlocutory orders did not operate as res judicata because they expressly left all issues open for decision. The interim order's confirmation was therefore invalid.

Customs test reports must be handled through coordination between investigating and customs authorities while testing remains pending. Non-disclosure of results during that period required explanation, particularly because the record contained an apparent inconsistency regarding whether the reports were available. Additional respondents were permitted to be impleaded, notice was issued, and further hearing was scheduled to clarify the status and availability of the test reports.

Technical write-offs of bad debts relating to non-rural advances are deductible without adjustment against the provision for bad and doubtful debts, as the two deductions operate independently. Provision for bad and doubtful debts must be calculated using aggregate average outstanding rural advances: monthly closing advances for each rural branch are aggregated, averaged and then combined, rather than limited to fresh advances made during the year. Minimum alternate tax does not apply to a nationalised corresponding new bank that is not formed or registered under the Companies Act, notwithstanding its deemed Indian-company status for specified income-tax purposes.

Charitable scholarships for students studying abroad and medical assistance for treatment abroad remain eligible applications of income in India where the trust disburses the financial aid in India. The relevant consideration is the situs of disbursal for the charitable purpose, not the location where a beneficiary subsequently receives education or medical treatment. Objects requiring scholarships and assistance to be awarded or rendered in India therefore do not contemplate application of trust funds outside India and do not breach the requirement under Section 11 of the Income-tax Act, 1961. Refusal of approval on a contrary reading was unsustainable, requiring fresh adjudication.

Long-term capital gains from listed-share sales cannot be treated as unexplained cash credit solely on a general penny-stock investigation report where the taxpayer substantiates the transactions. Banking-channel purchases, dematerialised share holdings, recognised stock-exchange sales through a registered broker, securities transaction tax payment, and bank receipt of sale proceeds support genuineness when the supporting records are not defective. Absent material linking the taxpayer to price manipulation, accommodation entries, or collusion with alleged operators, suspicion arising from price movement, company fundamentals, or a general modus operandi cannot displace the evidentiary record. The sale consideration is not assessable as unexplained cash credit, and the claimed long-term capital gains remain allowable.

Joint ownership and evidence of payment support deduction of housing-loan interest even where the bank certificate names only the other co-owner. Interest disallowance was therefore deleted because joint acquisition and the claimant's payment rebutted any presumption that no interest was paid. Salary-linked provident fund contributions deducted by the employer and substantiated LIC investments qualify for deduction under Section 80C; absence of additional documentation did not justify denial in the circumstances. The disallowance of the balance Section 80C claim was also deleted.

Revisionary jurisdiction cannot be used to order unspecified further enquiry where the Assessing Officer examined the long-term capital-gain computation, verified the difference from Form 26QB, and adopted a plausible view. A brief assessment order does not by itself establish lack of enquiry. The Principal Commissioner must identify a specific error and independently examine the assessment record; revision based on an audit-driven proposal without such satisfaction is jurisdictionally deficient. As no error prejudicial to Revenue was established, the revisionary action and consequential revision order were quashed.

A registered sale agreement, payment of consideration and delivery of possession collectively constituted a transfer of immovable property for section 56(2)(vii)(b). The difference between the ready-reckoner value and agreed consideration was therefore taxable despite non-execution of a conveyance deed. Pending property litigation and the absence of a later sale or conveyance deed did not alter the legal effect of the registered agreement and possession. The addition under section 56(2)(vii)(b) was sustained.

Circular No. 9/2024 applies to pending departmental appeals, implementing the enhanced monetary threshold and the exceptions retained under Circular No. 5/2024. The audit-objection exception previously available under Circular No. 3/2018 was superseded and not retained in the later circulars. Accordingly, where the tax effect is below the prescribed limit and no current exception applies, a Revenue appeal is not maintainable and must be dismissed.