Addition u/s 69A - Addition for alleged unaccounted import purchases - Acquisition of property under section 69A - Unexplained income - ownership of imported goods HELD THAT: - For invoking section 69A, acquisition of the relevant property by the assessee must be established. Use of the assessee's Import-Export Code for contractual convenience did not, by itself, establish ownership of the imported goods, particularly when the material on record showed that ARINC made the payments and ret... ... ...

Addition for unexplained money u/s 69A - sales recorded in books - identity of the purchasers was doubtful - HELD THAT: - Section 69A applies only where the money or asset is unrecorded. Sales receipts entered in the books cannot be taxed again as unexplained money merely because the purchasers' identities are doubted, as this would result in double addition. The Assessing Officer must discharge the burden of displacing the correctness of the audited or maintained books and establish absence... ... ...

Approval u/s 80G for religious-cum-charitable trusts - Religious expenditure ceiling for section 80G approval Eligibility of a religious-cum-charitable trust conducting satsang activities for approval u/s 80G - HELD THAT: - The expenditure on spiritual knowledge and satsang was less than five per cent of the donations received and was within the limit under Explanation (3) to section 80G. Meetings held to spread spiritual knowledge across communities could not, by themselves, be branded as re... ... ...

Penalty u/s 271(1)(c) for concealment - alleged concealment in respect of a gift received through banking channel - HELD THAT: - The confirmation, PAN and bank statements on record established the identity, genuineness and creditworthiness of the donor and the receipt through banking channel. Applying the principle laid down in SHRI CHANDRAKANT J. SHAH [2012 (3) TMI 647 - ITAT MUMBAI] that penalty is not exigible merely because a disclosed gift is added as unexplained cash credit when the don... ... ...

Revision u/s 263 - deduction under section 80P(2)(d) on interest from a Regional Rural Bank - assessment based on binding jurisdictional precedent Validity of revision of the assessment allowing deduction under section 80P(2)(d) on interest received from Baroda Rajasthan Kshetriya Gramin Bank, where the AO had examined the claim and followed the jurisdictional High Court judgment in the assessee's own case - HELD THAT: - Revision under section 263 requires the coexistence of an erroneous... ... ...

Unexplained jewellery found in search - Unexplained investment in stock found during search Addition for allegedly unexplained gold jewellery found at the family residence - Explanation of family jewellery - CBDT Instruction on jewellery holdings - HELD THAT: - The limits in the CBDT Instruction, though issued in the context of seizure, were relevant in evaluating the explanation of jewellery ordinarily held by family members in accordance with prevailing customs. The jewellery found was with... ... ...

Approval u/s 80G for educational institutions exempt u/s 10(23C) - Alternative statutory routes for non-inclusion of income Denial of approval u/s 80G to an educational institution solely for absence of registration u/s 12AB despite its claim of exemption under section 10(23C)(iiiad) - HELD THAT: - Section 80G(5)(i) recognises non-inclusion of income under sections 11 and 12 or section 10(23C) as alternative means of satisfying the prescribed condition. Registration under section 12AB is ther... ... ...

Bogus purchases - addition of embedded profit - Reassessment based on accommodation-entry information Addition in respect of purchases from accommodation-entry providers where the corresponding sales were not disputed - HELD THAT: - The supplier concerns were found to be providers of accommodation purchase entries. However, since the sales corresponding to the impugned purchases had not been disputed, the entire purchase amount could not be added; only the profit element embedded in such purc... ... ...

Validity of reassessment proceedings - Capital gains deduction u/s 54F for investment in multiple residential houses Reassessment proceedings - Speaking order on objections to recorded reasons - Requirement of a separate speaking order on the assessee's letter concerning the recorded reasons for reopening - HELD THAT: - The letter relied on contained only a statement of facts and did not raise specific or substantive objections to the recorded reasons in the manner contemplated for reasse... ... ...

Cost of improvement of residential flat - Capital additions or alterations to capital asset Allowability as cost of improvement of expenditure on routine repairs and removable articles associated with a residential flat - HELD THAT: - For expenditure to qualify as cost of improvement, it must be capital in nature and result in an addition to or alteration of the capital asset. Expenditure merely associated with the asset does not qualify. Applying this test, expenditure on routine repairs and... ... ...

Specified income of charitable institutions - Return-processing adjustments for reporting mismatch Taxability of application of accumulated charitable income - Scope of return-processing adjustments - Taxability under section 115BBI of income validly accumulated under section 11(2) in an earlier year and applied for charitable purposes during the year, where its application was omitted from the corresponding field in the electronic return. - HELD THAT: - Section 115BBI applies only where the ... ... ...

Time-limit for giving effect to remand requiring fresh assessment - Unexplained foreign currency as deemed income Time-limit for giving effect to remand requiring fresh assessment - Applicability of the time-limit for giving effect to the Tribunal's remand order where fresh assessment was required - HELD THAT: - Section 153(5) applies where effect is to be given otherwise than by making a fresh assessment or reassessment. As the remand required fresh consideration by the Assessing Officer... ... ...

Condonation of inordinate delay - sufficient cause of delay - delay of approximately 10 years 09 months - explanation that the assessee was awaiting the outcome of litigation in the case of BCCI or was under a mistaken belief regarding its registration under section 12A HELD THAT: - A litigant who voluntarily offered the receipt to tax, accepted the intimation and took no steps to contest it for more than a decade could not establish sufficient cause merely by awaiting a favourable decision c... ... ...

Assessment of non-searched person u/s 153C - reckoning of block period - Jurisdictional limitation for section 153C assessment Validity of assessments of a non-searched person for AY 2010-11 and AY 2011-12 u/s 153C where the relevant block period was reckoned from the date of search - HELD THAT: - For a non-searched person, the relevant date for computing the block period under section 153C is the date on which the seized material is handed over to, or satisfaction is recorded by, the Assessi... ... ...

Reassessment on stale information - Change of opinion - Mechanical approval for reassessment - Validity of reassessment for alleged unexplained credits from the two lender companies on the basis of information and a statement already available during the earlier search assessment and revision proceedings HELD THAT: - The information from the Investigation Wing and the statement relied upon for reopening had already been available when the assessment under section 153A and the revision proceed... ... ...

Denial of grant of TDS credit - mismatch between the tax credits claimed and allowed" as reflected in the Form No. 26AS containing the entire detail of TDS deducted on the income of the assessee - Procedural declaration under Rule 37BA(2) Whether TDS credit can be denied to a trust where the corresponding interest income was offered to tax by it, but the TDS stood deducted in the trustee's PAN and no declaration under Rule 37BA(2) was furnished? - HELD THAT: - The requirement of a declara... ... ...

MEIS rewards under the Foreign Trade Policy, 2015 - nature of benefit received - revenue or capital receipts - Scope of government assistance "by whatever name called" - Purpose test for export incentives Taxability of duty credit scrips received as rewards under the Merchandise Exports from India Scheme under the amended definition of income - HELD THAT: - Under the purpose test, MEIS rewards offset costs and infrastructural inefficiencies incidental to export activity and enable exporters t... ... ...

Disallowance of expenditure relating to exempt income-recording of satisfaction - Share valuation under discounted cash flow method Disallowance of expenditure relating to exempt income u/s 14A -recording of satisfaction - assessee's suo motu disallowance rejected without recording dissatisfaction from examination of the accounts - HELD THAT: - Recourse to the prescribed method for computing disallowance is available only after the Assessing Officer examines the accounts and records satis... ... ...

Jurisdictional validity of revision notice issued in incorrect official capacity - Revision for notional annual letting value of professionally used properties Jurisdictional validity of revision notice issued in incorrect official capacity - Statutory exercise of power by designated authority - Validity of revision proceedings where the show-cause notice was issued in the capacity of Principal Commissioner after the officer had assumed formal posting as Chief Commissioner - HELD THAT: - Thou... ... ...

Condonation of delay- unexplained delay of 87 days - sufficient cause - Locus standi of former director to appeal against company's assessment Condonation of delay-sufficient cause - Maintainability of an appeal filed beyond limitation without an application or material showing sufficient cause for delay - HELD THAT: - The statutory power to admit a delayed appeal is exercisable only upon satisfaction that sufficient cause prevented timely filing. As no condonation application, explanatio... ... ...