Deduction u/s 80P(2)(d) for interest on deposits with co-operative banks - Eligibility of primary agricultural credit co-operative societies for deduction u/s 80P(2)(d) in respect of interest earned on deposits with Guntur District Co-operative Bank and KDCC Bank HELD THAT: - Section 80P(2)(d) allows deduction of interest or dividends received by a co-operative society from investments with another co-operative society. Since the deposit-taking banks were registered co-operative societies and... ... ...

Search-related assessment under reassessment provisions - Unexplained unsecured loans - Third-party seized material and unexplained money - Arm's length corporate guarantee commission - Interest on delayed associated-enterprise receivables - Deduction for profits of eligible industrial undertaking Search-related assessment under reassessment provisions - Jurisdictional defect - Validity of regular assessments completed after a search initiated on or after 01.04.2021 - HELD THAT: - Explana... ... ...

Rectification of assessment - ambiguity in disallowance of goodwill - Set-off of brought-forward business losses - failure to adjudicate claim Rectification of assessment - ambiguity in disallowance of goodwill - Double addition of goodwill - disallowance of goodwill through the rectification order despite the assessee having added back the book write-off in computing taxable income - HELD THAT: - The assessee had added back the goodwill write-off in its computation, whereas the same amount w... ... ...

TP Adjustment - Functional comparability of administrative and marketing support service providers - Functional comparability of IT-enabled service providers Selection of comparables for benchmarking international transactions in the administrative and marketing support services segment - HELD THAT: - Entities engaged in engineering consultancy, construction-related work, trading and mixed sales and services, commission agency or technical services were functionally dissimilar to administrati... ... ...

TP Adjustment - AMP benchmarking by Bright Line Test and intensity-adjusted TNMM - Rectification of DRP directions - Binding nature of DRP directions Validity of the rectified DRP directions which altered the AMP benchmarking methodology on an application moved by the CIT(DR) - HELD THAT: - The Tribunal accepted the additional grounds challenging the rectification. It accepted that the rectification, initiated on the CIT(DR)'s application and resulting in a change from the earlier benchma... ... ...

Transfer pricing applying a mark-up of 20% on reimbursement of expenses received - Arm's length price of television-channel distribution licence fee - Additional claim for deduction of foreign taxes Transfer pricing applying a mark-up of 20% on reimbursement of expenses received - Third-party expenses without value addition - HELD THAT: - Reimbursements recovered from domestic group entities could not be subjected to an upward transfer-pricing adjustment merely because no profit was charg... ... ...

Bogus Long-term capital gains on sale of LDPL shares - Unexplained cash-credit addition based on alleged bogus share transactions - HELD THAT: - The purchase, payment, dematerialisation, sale through the stock exchange and receipt of sale proceeds were supported by documentary evidence available for verification. The adverse view was founded principally on the extraordinary rise in the share price. Following the co-ordinate Bench orders concerning the same scrip SHRI KRISHAN KUMAR, DELHI [202... ... ...

Gross-profit estimation in meat-export business - Classification of direct and indirect expenses for gross-profit computation Addition based on estimation of gross profit in the assessee's meat-export business despite deficiencies in purchase and stock records - HELD THAT: - The gross-profit ratio declared by the assessee had been computed by treating terminal handling, export-related, clearing and forwarding, and cold-storage charges as direct expenses. On treating those expenses as indi... ... ...

Transfer pricing comparability of ITeS support-service providers - Functional comparability of ITeS support-service providers - Exclusion of comparables having significant R&D, intangibles or diversified operations - Absence of segmental information - Selection of comparables for benchmarking the assessee's provision of ITeS support services to its associated enterprise under TNMM - HELD THAT: - Tata Elxsi Ltd. was engaged in design and engineering services, digital-content creation and s... ... ...

TP adjustment of royalty paid to non-associated enterprise - Disallowance of independently agreed royalty expenditure Disallowance of royalty paid under a licence agreement to a foreign licensor, by benchmarking the royalty rate despite the parties not being associated enterprises - HELD THAT: - The licensor was not disclosed as a related party in the financial statements or in communications furnished to the tax authorities. Transfer-pricing provisions apply to transactions between related p... ... ...

Assessment of other person under section 153C - jurisdictional satisfaction after 1 April 2021 Validity of proceedings under section 153C where the search preceded 1 April 2021 but the jurisdictional satisfaction for the other person was recorded thereafter - HELD THAT: - The applicability of the assessment regime was determined by the jurisdictional event of recording satisfaction in the case of the other person, and not merely by the date of search. Since satisfaction was recorded after 1 A... ... ...

Addition u/s 56(2)(vii)(b) - difference between the purchase consideration and stamp-duty value of agricultural land HELD THAT: - The lower authorities had not disputed the agricultural character of the land purchased. Agricultural land falling outside the definition of capital asset is outside the scope of the deeming provision in section 56(2)(vii)(b); consequently, the difference between its purchase consideration and stamp-duty value could not be assessed as income from other sources. [Pa... ... ...

Bogus share transactions - tax-motivated capital loss - artificial loss - Colourable device and tax planning - Disallowance of short-term capital loss on sale of unlisted shares to the assessee's husband as a colourable device - HELD THAT: - The Tribunal found that the Revenue had not disputed the actual execution or genuineness of the purchase and sale of shares, which were supported by banking records and transfer documentation. No adverse material established that the transaction was an a... ... ...

Advance-tax precondition for admission of appeal where no return has been filed - Failure to consider claim of absence of advance-tax liability Dismissal of the quantum appeal for non-compliance with the advance-tax payment condition applicable where no return of income has been filed - HELD THAT: - Where no return has been filed, payment of advance tax otherwise payable is a condition for admission of appeal, subject to the appellate authority's power to grant exemption on an application... ... ...

Interest on refund of self-assessment tax - Entitlement to interest on refund arising from excess self-assessment tax after appellate relief HELD THAT: - Where self-assessment tax paid exceeds the tax ultimately chargeable as a result of appellate proceedings, the resulting refund carries interest as a statutory and non-discretionary consequence. Hon'ble Supreme Court, in the matter of Union of India Vs. Tata Chemicals Ltd. [2014 (3) TMI 610 - SUPREME COURT] held that the refund becomes du... ... ...

Addition u/s 56(2)(viia) - Fair market valuation of unquoted preference shares - Accountant's valuation report under Rule 11UA - Additional evidence before the Tribunal Accountant's valuation report under Rule 11UA - Validity of valuation of unquoted preference shares on the basis of a report issued by an accountant- HELD THAT: - Rule 11UA expressly permits the assessee to obtain a valuation report from an accountant in respect of unquoted shares and securities other than equity share... ... ...

Revision of assessment for lack of inquiry - Erroneous and prejudicial assessment order Validity of revision of the scrutiny assessment on the ground that the Assessing Officer had failed to inquire into depreciation on fixed assets, commission paid to a non-resident and deduction claimed for employment of new workmen - HELD THAT: - The Tribunal's findings that the AO had conducted inquiries during assessment, applied mind to the matters in question, and that the Principal Commissioner ha... ... ...

Revision of assessment prejudicial to Revenue u/s 263 - Substitution of opinion in revisionary jurisdiction Assumption of revisionary jurisdiction over an assessment accepting the assessee's claim of indexed cost of acquisition and cost of improvement on sale of property - HELD THAT: - The material placed by the assessee had been disclosed before the Assessing Officer, who considered the explanation and consciously made no addition. The twin requirements of an erroneous assessment order a... ... ...

Unexplained investment - addition for alleged on-money - Presumption as to seized documents - scope of section 132(4A) Unexplained investment - addition for alleged on-money - Addition as unexplained investment for alleged cash on-money payment in acquisition of land, founded solely on information contained in a file received from the DRI - HELD THAT: - The concurrent factual findings were that, apart from the file received from the DRI, the AO had gathered no evidence of payment of on-money.... ... ...

Decoding of numerical entries in seized documents - Attribution of rough-diamond transactions reflected in seized documents Decoding of numerical entries in seized documents - Undisclosed income from unrecorded diamond-business transactions - Interpretation of the numerical entries on pages 4 and 5 of Annexure B-3 for determining undisclosed income from the assessee's unrecorded diamond-business transactions - HELD THAT: - The Tribunal, having held that multiplication of the recorded figu... ... ...