Reassessment - sanction by specified authority u/s 151 - Validity of the reassessment notice issued after more than three years from the end of AY 2017-18 where approval was granted by the Principal Commissioner instead of the authority specified under section 151(ii). HELD THAT: - Sanction under section 151 is a substantive statutory safeguard against reopening a completed assessment and not an internal administrative formality. Where more than three years have elapsed, approval must emanate... ... ...

Cost of acquisition of residential property - Direct and proximate nexus with acquisition - One-time charges paid to developer - Direct and proximate nexus with acquisition Whether one-time club house charges, corpus fund contribution and municipal taxes paid to the builder during the acquisition phase form part of the cost of acquisition for computing capital gains? - HELD THAT: - Cost of acquisition under section 48 is not confined mechanically to the basic sale price. The character of an o... ... ...

Disallowance of interest u/sec.36(1)(iii) - Interest deduction on borrowed capital - Interest-free advances from sufficient own funds Disallowance of interest on bank borrowings on the ground that an interest-free advance to the assessee's son for purchase of property represented diversion of borrowed funds for non-business purposes - HELD THAT: - Where the assessee established own capital exceeding the interest-free advance, the advance was to be regarded as made out of own funds. The ba... ... ...

Late-filing fee u/s 234E - delayed TDS statements for periods preceding 1 June 2015 - Prospective operation of power to compute late fee while processing TDS statements HELD THAT: - The power to compute fee while processing TDS statements was introduced in section 200A only with effect from 1 June 2015. That enabling provision confers substantive power and operates prospectively; consequently, late fee under section 234E cannot be levied for a period of default preceding that date merely beca... ... ...

Negative lien over operating assets as an international transaction - Arm's-length price determined for the negative-lien arrangement Negative lien over oil and gas assets - international transaction - Continuance of negative lien after borrower bankruptcy - Whether Negative lien created over participating interests in oil and gas blocks and related receivables to secure loans availed by associated enterprises constituted an international transaction? - HELD THAT: - The assessee, being a ... ... ...

Unexplained cash credit - amounts recorded as unsecured loans and debits to the assessee's capital account with a partnership firm Unexplained cash credit - capital-account withdrawals and payments by partnership firm - Addition as unexplained cash credit in respect of amounts debited by a partnership firm to the assessee's capital account - HELD THAT: - The material showed that the disputed amounts represented withdrawals from the assessee's capital account and expenses incurred ... ... ...

Commercial character of contractual payments to associated enterprise - Secondary adjustment for pre-1 April 2016 primary adjustments - Arm's length price determination by prescribed method - Benchmarking interest on foreign currency loan to associated enterprise - Disallowance relating to exempt income under rule 8D - Export turnover for software undertaking deduction - TDS credit on basis of TDS certificates - Deduction of education cess Commercial character of exclusivity payment - Not... ... ...

Deduction for additional employee cost in manpower services u/s 80JJAA - Chapter VI-A deduction on transfer-pricing income enhancement Deduction for additional employee cost in manpower services - Employer-employee relationship - Eligibility of a manpower-services provider for deduction in respect of additional employee cost where personnel are deployed at customers' premises - HELD THAT: - Following the Co-ordinate Bench decision in the assessee's own case on identical facts, the Tri... ... ...

TP Adjustment - comparability of IT-enabled BPO service providers - Deduction for export of computer software - notified back-office and data-processing services TP Adjustment - comparability of IT-enabled BPO service providers - Functional comparability - Brand value and scale of operations - Selection and rejection of comparables for benchmarking international transactions of an IT-enabled BPO service provider - HELD THAT: - Informed Technologies India Ltd. was rightly included consistently... ... ...

Revisionary jurisdiction over erroneous and prejudicial assessment - Plausible view after enquiry Revision u/s 263 - as per CIT AO accepted the explanation for cash deposited in old currency notes during the demonetisation period without proper inquiry - HELD THAT: - The Assessing Officer had made an enquiry, considered the explanation that part of the deposit represented the savings of the assessee's wife and children, and obtained the wife's affidavit. The view so taken was plausibl... ... ...

Interest on borrowings for strategic investments - Commercial expediency - Presumption as to utilisation of interest-free funds Interest on borrowings for strategic investments - Commercial expediency - Allowability of interest on borrowed capital used for acquiring or maintaining controlling interests through strategic investments in group companies - HELD THAT: - In CIT v. Malayalam Plantations Ltd. [1964 (4) TMI 9 - SUPREME COURT] examined the scope of the expression "for the purposes of b... ... ...

Deduction u/s 80P for credit facilities provided by a Souharda Sahakari - Principle of mutuality HELD THAT: - In Tumkur Merchants Souharda Credit Cooperative Ltd. [2015 (2) TMI 995 - KARNATAKA HIGH COURT] the Hon'ble Karnataka High Court held that a co-operative society engaged in providing credit facilities to its members earns business income from that activity. If surplus funds that are not immediately required for lending to members are deposited in a bank to earn interest, such interest ... ... ...

Limitation for revision under section 263 - Revision of assessment of software receipts as royalty Limitation for revision under section 263 - Validity of revisionary proceedings initiated after expiry of the statutory period for revising the assessment order - HELD THAT: - Revision under section 263(2) could be exercised only within two years from the end of the financial year in which the assessment order was passed. The limitation expired on 31 March 2025, whereas the first revisionary not... ... ...

Immunity from penalty u/s 270AA for under-reported income - Under-reporting of income where return is first filed in reassessment Immunity from penalty u/s 270AA for under-reported income - Rejection of the application for immunity from penalty without identifying the unfulfilled statutory conditions or affording an opportunity of hearing - HELD THAT: - Though rejection of an immunity application is not appealable, no rejection can be made without affording the assessee an opportunity of bein... ... ...

Reopening of assessment on subsequent information of bogus transactions - Estimation of gross profit on unproved purchase and sale transactions Validity of reopening beyond four years where subsequent survey information indicated that the assessee's purchase and sale transactions were bogus - HELD THAT: - The original assessment contained no examination of the purchases or sales and, in fact, recorded that there was no business activity. The subsequent survey information concerning allege... ... ...

TP Adjustment - Internal TNMM for benchmarking ITeS transactions - Segmental allocation of costs Whether Internal TNMM, based on the assessee's AE and non-AE segments, was the appropriate method for benchmarking ITeS transactions? - HELD THAT: - Following the earlier decisions in the assessee's own case on identical grounds [2021 (11) TMI 1101 - ITAT DELHI] and [2022 (10) TMI 375 - ITAT DELHI] the Tribunal held that the services rendered to associated enterprises and non-associated en... ... ...

Tax deduction at source on External Development Charges - Assessee in default for non-deduction of tax - TDS on external development charges paid to the urban development authority - HELD THAT: - Following the binding decision of the jurisdictional High Court Puri Constructions [2024 (2) TMI 756 - DELHI HIGH COURT] and in view of the assessee's acceptance of the position, the Tribunal held that payment of External Development Charges to HUDA/HSVP attracted deduction of tax at source under... ... ...

Penalty notice 271(1)(c) - non specifying charge - Penalty proceedings against amalgamated entity - Penalty for disallowance of licence-fee claim Defective penalty notice - Concealment or furnishing inaccurate particulars - Validity of penalty proceedings where the notices did not specify whether the charge was concealment of income particulars or furnishing inaccurate particulars - HELD THAT: - The notices issued for penalty were ambiguous as to the particular limb of the statutory default f... ... ...

Cancellation of registration and rejection of renewal of charitable trust - Specified violation for cancellation of charitable trust registration - Scope of inquiry on renewal of charitable trust registration - deposits during demonetisation constituted a basis to treat the trust's activities as non-genuine - diversion of funds or a specified violation Cancellation of registration and rejection of renewal without a notice identifying the statutory basis and the alleged specified violation... ... ...

Applicability of faceless assessment procedure - Rejection of books and profit estimation in online share trading - Rational basis for best judgment assessment Applicability of faceless assessment procedure - Validity of the assessment for non-compliance with the faceless-assessment procedure - HELD THAT: - The assessment was made by the jurisdictional Assessing Officer outside the scope of section 144B. The mandatory notices u/ss 143(2) and 142(1) had been issued; consequently, non-observanc... ... ...