Limitation for revocation of Customs Broker licence - Offence report under CBLR, 2018 Validity of revocation of the Customs Broker licence where the notice under Regulation 17(1) of the CBLR, 2018 was issued beyond ninety days from receipt of material constituting the offence report - HELD THAT: - Where no separate investigation report was furnished, the show-cause notices issued under the Customs Act, containing the investigation summary, allegations and relied-upon documents, constituted th... ... ...

Provisional release of detained imported goods - Security for differential customs duty Provisional release of detained goods declared as SS Mop Stick and Sponge, pending adjudication on alleged misdeclaration and misclassification - HELD THAT: - The Court held that the interests of the Revenue would be adequately protected if the importer paid the duty on the declared value and furnished security towards the differential duty. Continued detention until completion of adjudication was therefor... ... ...

Conditional registration under section 12AB and approval under section 80G - Validity of a condition making the applicability and consequential tax benefits of registration under section 12AB and approval under section 80G contingent upon the outcome of future Supreme Court litigation HELD THAT: - The statutory scheme permits the competent authority to grant registration or reject the application in accordance with law; it does not contemplate an intermediate category in which a registration ... ... ...

Estimation of profits without rejection of books of account - Addition based solely on fall in net profit ratio Addition for fall in net profit ratio despite acceptance of the books of account and not rejected - HELD THAT: - The assessee had produced complete books, bills and vouchers, ledger accounts and stock registers, but no defect was pointed out and the books were not rejected. The fall in net profit ratio was explained by increased consumption of goods, raw materials and components and... ... ...

Share premium taxation under section 56(2)(viib) - Fair market value of unquoted equity shares - Assessee's option to adopt Discounted Cash Flow valuation - Assessing Officer's power to reject valuation report Validity of the addition on share premium under section 56(2)(viib) by substituting the formula-based Net Asset Value for the assessee's substantiated valuation of unquoted equity shares - HELD THAT: - Rule 11UA(2) leaves the choice between the prescribed valuation methods t... ... ...

Revisionary jurisdiction over search reassessment - Incriminating material in post-search reassessment Revision of a reassessment arising from search to examine disallowance of transportation charges for alleged non-deduction of tax at source, where no incriminating material concerning that expenditure was found during search - HELD THAT: - For a reassessment initiated pursuant to search under Explanation 2 to section 148, the requisite information suggesting escapement of income must be incr... ... ...

Reassessment - reason to believe and live nexus - Independent application of mind to investigation information Validity of reassessment where the recorded information was acted upon as alleging bogus purchases, but the impugned credits were ultimately assessed as unexplained unsecured loans - HELD THAT: - An alleged bogus purchase and an unexplained loan involve materially different factual enquiries, statutory foundations and evidentiary requirements. While information from the Investigation... ... ...

Bogus diamond purchases - embedded profit addition Bogus diamond purchases - embedded profit addition - Alleged bogus purchases of diamonds for AY 2008-09 - HELD THAT: - The books of account were not rejected, the stock and quantitative particulars attracted no adverse finding, and the sales corresponding to the purchases were accepted. As the Revenue produced no contrary evidence to disprove the actual sales, disallowance of the entire purchase value was unwarranted. Where accommodation b... ... ...

Market data charges as royalty under the India-USA DTAA - Seconded-employee cost reimbursements as fees for included services under the India-US DTAA Market data charges as royalty under the India-USA DTAA - Taxability of market data charges recovered from Indian associated enterprises as royalty under the India-USA DTAA - HELD THAT: - The factual position was indistinguishable from that in the assessee's earlier cases for AY 2017-18 [2023 (5) TMI 544 - ITAT MUMBAI] wherein such receipts ... ... ...

Cash deposits from recorded cash sales during demonetization - Rental receipts reflected in Form 26AS - Disallowance of business expenditure for non-deduction of tax at source - Premature challenge to initiation of penalty proceedings - Enhancement for alleged unexplained receipts in a running account - Cessation of liability on reversal of overdraft interest Unexplained cash deposits from recorded cash sales during demonetization - Addition of cash deposited in specified bank notes during de... ... ...

Unexplained cash credit in share capital and share premium - Non-appearance of subscriber-directors in response to summons - Addition of share capital and share premium as unexplained cash credit where documentary evidence regarding the subscribers was furnished but their directors did not appear in response to summons - HELD THAT: - The Tribunal found that the assessee had produced PAN details, addresses, audited financial statements, bank statements, MCA data and confirmations from the share s... ... ...

Taxability of compensation for compulsory acquisition of rural agricultural land - Exemption under the RFCTLARR Act - HELD THAT: - The land was undisputedly rural agricultural land and was therefore not a capital asset. Applying Circular No. 36/2016, the Tribunal held that compensation received on compulsory acquisition under the RFCTLARR Act is exempt from income-tax. [Paras 5, 6] The addition made by treating the compensation as short-term capital gain was directed to be deleted. Final C... ... ...

Cash-credit addition for share capital and premium - Independent inquiry in revisionary set-aside proceedings - there was non- appearance of the directors in response to summons u/s 131 Addition of share capital and share premium as unexplained cash credit where the inquiry directed in revisionary proceedings was not undertaken and the assessee-company's directors did not comply with summons - HELD THAT: - The original reassessment had examined the share issue, while the assessee and the ... ... ...

TP Adjustment - Arm's length price of operational expense reimbursements - Deductibility of unutilised foreign tax credit - Tax deduction at source on non-resident service payments Arm's length price of operational expense reimbursements - Arm's length price adjustment for reimbursement of operational expenses incurred by foreign associated enterprises for the assessee's NVOCC operations - HELD THAT: - The material supporting virtually the entire reimbursement transaction had ... ... ...

Employee long-term reward insurance premium as business expenditure - Reassessment on subsequent scrutiny information - change of opinion - Proof of statutory approval for reassessment notice Reassessment on subsequent scrutiny information - change of opinion - Validity of reassessment for disallowance of employee long-term reward insurance premium, where the claim had been allowed in an earlier assessment year - HELD THAT: - Acceptance of the claim in A.Y. 2012-13 did not preclude reassessme... ... ...

Deduction under section 80P(2)(a)(i) - Interest on deposits with co-operative banks - HELD THAT: - Interest earned by such a society on funds deposited with a co-operative bank or bank retains its character as income attributable to its business of providing credit facilities to members and is eligible for deduction. As the facts were identical to those in the precedents considered, the disallowance was unsustainable. See KARNATAKA STATE CO-OPERATIVE APEX BANK [2001 (8) TMI 9 - SUPREME COURT]... ... ...

Corporate guarantee as international transaction - Arm's length pricing of corporate guarantee - Deduction for Special Economic Zone development profits Corporate guarantee as international transaction - Transfer-pricing adjustment on corporate guarantee issued for the borrowing of an associated enterprise - HELD THAT: - The Explanation to section 92B includes guarantee within capital financing. The corporate guarantee increased the associated enterprise's creditworthiness and involve... ... ...

Ad hoc disallowance of business expenditure - Specified Bank Notes deposits from recorded cash sales - Unsecured loan credits - creditworthiness and genuineness Ad hoc disallowance of business expenditure - Ad hoc disallowance of employee benefit and other business expenses by applying an average expense-to-turnover ratio without identified defects in the accounts - HELD THAT: - Neither the AO nor the appellate authority identified any particular expenditure as bogus, non-genuine, excessive o... ... ...

Enhanced penalty for misreporting of income u/s 270A(8) - Requirement of a specific statutory charge for misreporting - Substitution of penalty charge in appellate proceedings Misreporting of income - Specific statutory charge - Enhanced penalty - Sustainability of enhanced penalty for misreporting in respect of omitted salary, interest and rental receipts without identifying and establishing an applicable circumstance under section 270A(9) - HELD THAT: - Under-reporting and under-reporting i... ... ...

Income deemed to accrue or arise in India - Telecommunication-service receipts - royalty/FTS or business profits - India-UK DTAA. HELD THAT: - The controversy was found to be recurring, with coordinate Bench decisions in the assessee's own cases consistently [2019 (11) TMI 1110 - ITAT MUMBAI] AND [2023 (4) TMI 1478 - ITAT MUMBAI] resolving it in favour of the assessee. As the Revenue could not distinguish those decisions on facts or law, the Tribunal followed them. Those decisions proceed... ... ...