Remission or cessation of trading liability - Unsecured loans-identity, creditworthiness and genuineness - Additional evidence before first appellate authority - CASS scrutiny parameters and statutory additions Remission or cessation of trading liability - Addition for alleged cessation of outstanding trade creditors merely because confirmations, bills and vouchers were not furnished during assessment - HELD THAT: - Section 41(1) applies only where the assessee has obtained a benefit through ... ... ...

Applicability of section 271AAB - Undisclosed income represented by unreconciled jewellery found in search - Penalty rate for search disclosure under section 271AAB Undisclosed income represented by unreconciled jewellery found in search - Unreconciled jewellery found during search constituted undisclosed income for the specified previous year - HELD THAT: - The jewellery was found in search, was not reconcilable with wealth-tax returns, valuation reports or other contemporaneous records, and... ... ...

Accommodation-entry provider - unidentified bank credits - Deduction of ordinary business expenditure from unlawful income Accommodation-entry provider - unidentified bank credits - Burden to explain cash credits - Taxability of bank credits in the hands of an admitted accommodation-entry provider where the beneficiaries are not identified - HELD THAT: - An admission that the assessee provided accommodation entries does not establish that every bank credit belonged to an unidentified customer... ... ...

Diamond grading and certification charges as fees for technical services - TDS u/s 195 - Tax deduction at source on non-resident payments not chargeable to tax - Make available condition under tax treaties - HELD THAT: - The substance of the service was examination of diamonds and issuance of an independent report stating their physical characteristics. Mere use by the service provider of specialised knowledge, scientific equipment or qualified personnel did not render the consideration fees ... ... ...

Loss from the impugned penny-stock transactions - Unexplained commission expenditure - Commercial expediency of interest-free advances to related concern Loss from the impugned penny-stock transactions treated as an artificial or non-genuine loss - Burden to establish nexus with alleged share-price manipulation - Disallowance of loss from documented transactions in penny-stock scrips on the basis of investigation material, unusual price movements and alleged manipulation - HELD THAT: - Invest... ... ...

Unverifiable purchases in manufacturing business - Estimation of profit element in grey-market purchases - Rejection of books of account for unverifiable purchases HELD THAT: - Failure to establish purchases from the stated supplier, coupled with absence of separate stock records and non-production of the supplier, justified rejection of the books in relation to the disputed purchases and estimation of income. However, accepted sales, the established manufacturing activity and absence of mate... ... ...

Deduction for donations to approved scientific research institutions - Effect of subsequent withdrawal of institutional approval Deduction u/s 35(1)(ii) for a donation made to a scientific research institution whose approval was valid when the donation was made - HELD THAT: - The evidence produced showed that the donation was made through banking channels while the recipient institution held valid approval for the purposes of section 35(1)(ii). The subsequent withdrawal of that approval could... ... ...

Applicability of section 194H to the amount of convenience fee collected from customers and retained by online ticketing platform under the brand name "Book My Show"- representative capacity of recipient Liability to deduct tax at source on convenience fee collected and retained by an online ticketing platform - distinction between a principal-agent relationship and a transaction undertaken on a principal-to-principal basis - HELD THAT: - For a receipt to constitute commission or brokerage, t... ... ...

Deduction claimed u/s 80JJAA - Additional employee cost in manpower-supply business - Employer-employee relationship in contract-labour arrangements Eligibility of a manpower-supply enterprise for deduction u/s 80JJAA in respect of employees recruited, paid and controlled by it but deputed at client premises - HELD THAT: - In a contract-labour arrangement, personnel remain employees of the contractor where it pays their salaries and retains the right to regulate their employment and ultimate ... ... ...

Buy-back of own shares and receipt of property - Interest disallowance on interest-free advances - Bad debts from money-lending business Buy-back of own shares and receipt of property - Mandatory extinguishment of bought-back shares - Applicability of section 56(2)(x) to the buy-back of the company's own shares at a consideration below their fair market value, followed by mandatory extinguishment - HELD THAT: - Even assuming that section 56(2)(x) operates independently of the GAAR provisi... ... ...

Stamp-duty valuation of jointly purchased immovable property - Reference to Departmental Valuation Officer on disputed stamp-duty valuation HELD THAT: - The provisions of section 50C sub-section (2) of the Act provides that where the assessee claims before any AO that the value adopted or assessed (or assessable) by the Stamp Valuation Authority under sub-section (1) exceeds the Fair Market Value of the property as on the date of transfer, the AO may refer the valuation of capital asset to th... ... ...

Abandoned expansion project expenditure - Nature of expenditure - Capital and revenue expenditure - Matching principle Deductibility of expenditure written off on abandonment of a proposed towel-manufacturing project forming part of the assessee's existing textile business - HELD THAT: - The character of expenditure depends on its real nature, purpose and business context, and not conclusively on its prior accounting treatment as capital work-in-progress. The project represented expansion... ... ...

Validity of Reassessment - mechanical sanction under section 151 - Reopening based on cash deposits in jointly held bank accounts - sanction granted by merely recording "Approved" HELD THAT: - Approval under section 151 is not an empty formality and requires the competent authority to independently apply its mind to the material before granting sanction. The bare endorsement "Approved", without recording satisfaction, material examined or reasons, disclosed non-application of mind; the princi... ... ...

Statutory interest on income-tax refund - Entitlement to interest u/s 244A(1)(a) on refund arising from appellate reduction of tax rate - Additional interest for delayed appellate refund Interest on refund arising from excess advance tax and TDS - Delay attributable to assessee - Entitlement to statutory interest on refund arising upon application of the lower long-term capital-gains rate accepted in appellate proceedings - HELD THAT: - Interest under section 244A(1)(a) is mandatory once a re... ... ...

Deduction of Work Contract Tax under cash system of accounting - Compensatory interest on delayed payment of Work Contract Tax Deduction of Work Contract Tax under cash system of accounting - Selective application of mercantile accounting - Allowability of Work Contract Tax pertaining to earlier financial years but actually paid during the relevant previous year by an assessee consistently following the cash system of accounting - HELD THAT: - Under the cash system, expenditure is ordinarily ... ... ...

Addition as unexplained money without examination of books of account - Penalty u/s 271(1)(b) for non-compliance with statutory notices - subsequent compliance Cash deposits reflected in books of account - Addition as unexplained money - unexplained money addition u/s 69A without examination and rejection of those books - HELD THAT: - The assessee had furnished purchase and sales registers, cash book, bank ledgers and journal, and had sought to correlate the deposits with cash balances record... ... ...

Due date for return where accounts are audited under another law - Rectification of mistake apparent from record Due date for return where accounts are audited under another law - Carry forward of business loss - Applicability of the extended due date for filing the return by an LLP whose accounts were statutorily required to be audited under the LLP law, and consequent entitlement to carry forward business loss - HELD THAT: - Explanation 2(a)(ii) to section 139(1) separately covers accounts ... ... ...

Refusal of registration u/s 12AB - investor-protection fund benefited specified persons - Charitable purpose-proviso to section 2(15) - Approval under section 80G-consequential rejection Eligibility of a regulated investor-protection trust for registration under section 12AB despite contributions from the stock exchange and its trading members - HELD THAT: - Compensation was payable to eligible investors only upon default by a trading member and insufficiency of that member's assets. The ... ... ...

Reassessment notice - statutory approval by competent authority - Jurisdictional defect in reassessment proceedings Validity of reassessment notice issued after expiry of three years from the end of the relevant assessment year on approval of the Principal Commissioner instead of the Principal Chief Commissioner or Chief Commissioner - HELD THAT: - Section 151(ii) mandates prior approval of the Principal Chief Commissioner or Chief Commissioner where notice under section 148 is issued after e... ... ...

Profit adjustment under section 10A(7) read with section 80-IA(10) - Deduction for export-oriented undertaking - addition made by reducing profits eligible for deduction u/s 10A on the ground that the assessee's net profit margin exceeded that of comparables HELD THAT: - The Court accepted that the controversy was covered against the Revenue by the coordinate-Bench decisions in Schmetz India (P) Ltd. [2012 (9) TMI 407 - BOMBAY HIGH COURT] and Pragati Aroma Oil Distillers Private Ltd. [202... ... ...