Validity of regular assessment after search - Special procedure for search-related escaped income - Validity of the regular assessment u/s 143(3) after a search u/s 132 - HELD THAT: - Once a search had been conducted in the assessee's case, the Assessing Officer was required to invoke the special reassessment mechanism under section 148 . The general scrutiny-assessment procedure under section 143(3) could not thereafter be adopted for the assessment in question as upheld in MONTAGE ENTERPRI... ... ...

Unexplained money u/s 69A - recorded debenture subscription - Test of human probabilities Sustainability of the addition as unexplained money in respect of subscription to secured redeemable non-convertible debentures recorded as a liability in the books - HELD THAT: - Section 69A applies where money or other valuable article owned by the assessee is not recorded in the books. The debenture subscription was recorded as a liability and supported by documentary evidence; no material established... ... ...

Unexplained cash credit - bank deposits without books of account - Indexed cost of improvement-conversion charges and property improvements - Additional claims affecting capital gains and foreign rental income - Fresh capital-gains exemption claim requiring factual inquiry Unexplained cash credit - bank deposits without books of account - Validity of addition of bank cash deposits as unexplained cash credit where the assessee maintained no books of account - HELD THAT: - Section 68 presuppose... ... ...

Penalty u/s 271D for cash receipt towards sale consideration of immovable property - satisfaction for contravention of section 269SS Validity of penalty for receipt of cash sale consideration for immovable property where no satisfaction regarding contravention of section 269SS was recorded in the assessment order - HELD THAT: - The Assessing Officer was required to record satisfaction during the assessment proceedings regarding the violation attracting penalty. Following CIT Vs. Jai Laxmi Ric... ... ...

Estimation of net profit from vegetable commission business - cash deposits were accepted as business turnover HELD THAT: - Once the assessee's activity as a commission agent and the cash deposits as business turnover were accepted, the income estimate had to reflect the nature of that activity and the material on record. The appellate authority had not considered the loading, unloading, salary and administrative expenses, or the income results accepted in the assessee's succeeding as... ... ...

Disallowance under section 14A in absence of exempt income - Prospective operation of the Explanation to section 14A - Genuineness of outstanding trade liability Disallowance under section 14A in absence of exempt income -HELD THAT: - The assessee admittedly earned no exempt income during the relevant previous year. Under the settled legal position, section 14A could not be invoked in such circumstances. The Explanation inserted by the Finance Act, 2022 was prospective and applicable from Ass... ... ...

Penalty for inaccurate particulars on Section 43B disallowance of statutory tax liabilities - Penalty for concealment of foreign dividend income disclosed in the return Penalty for inaccurate particulars - Section 43B disallowance of statutory tax liabilities - Penalty for furnishing inaccurate particulars in respect of disallowance of sales tax, works contract tax and service tax liabilities under Section 43B, where such liabilities were not routed through the profit and loss account - HELD ... ... ...

Section 50C tolerance for DVO valuation - Retrospective application of beneficial 10% tolerance band Addition based on the DVO's valuation of a property under section 50C, where the excess over the sale consideration reported by the assessee was within 10% - HELD THAT: - The Tribunal treated the tolerance provision under section 50C as beneficial and applicable retrospectively. Since the difference between the DVO's valuation and the sale consideration reported by the assessee was bel... ... ...

TP Adjustment - aggregation of royalty with manufacturing activity under TNMM - Comparable selection for engineering and design services - Disallowance of expenditure in relation to exempt income Royalty payment for engine technology - Aggregation approach under TNMM - Arm's length benchmarking of royalty paid for use of engine technology as part of the manufacturing segment - HELD THAT: - Having accepted TNMM as the most appropriate method for the manufacturing transactions, including ro... ... ...

Extended-period reassessment - statutory nexus of escaped income with asset, expenditure or book entry - Search-related assessment - assessment year preceding the search year - Unaccounted sales - corroboration of WhatsApp chats and digital material Extended-period reassessment - statutory nexus of escaped income with asset, expenditure or book entry - Validity of reassessment for assessment years 2016-17 to 2018-19 on alleged unaccounted business receipts and expenses - HELD THAT: - For reas... ... ...

Direct Tax Vivad se Vishwas Scheme - payment pursuant to revised Form-3 - Impossibility of performance Entitlement to settlement under the Direct Tax Vivad se Vishwas Scheme where revised Form-3, issued to rectify computational errors, prescribed a payment deadline preceding its issuance - HELD THAT: - Having accepted errors in the original computation and issued a revised Form-3, the designated authority could not require compliance with a date that had already elapsed, as that would require... ... ...

Reassessment in absence of escaped income - First financial year of company Validity of reassessment for the initial three months after incorporation when the company's entire income for its first 15-month financial year was disclosed in the return for assessment year 2021-22 - HELD THAT: - The Court found that the petitioner had disclosed its entire income for the period from 01.01.2020 to 31.03.2021 in its return for assessment year 2021-22. Since a 15-month first financial year was per... ... ...

Limitation for notice under section 153C - Time-barred notice under section 153C Validity of the notice under section 153C for AY 2016-17 where the satisfaction note was recorded in AY 2023-24 - HELD THAT: - The applicable six-year limitation, reckoned backwards from the assessment year immediately preceding the year in which the satisfaction note was recorded, extended only up to AY 2017-18. AY 2016-17 consequently fell outside the permissible period. Case followed OJJUS MEDICARE PVT. LTD. A... ... ...

Limitation for notice u/ss 153A and 153C - Validity, on limitation, of the notice under section 153C for AY 2010-11 pursuant to a satisfaction note recorded in AY 2024-25 - HELD THAT: - The ten-year limitation had to be reckoned backwards from AY 2024-25, in which the satisfaction note was recorded. Even on the stated basis that the extended ten-year period applied, it extended only up to AY 2015-16; consequently, AY 2010-11 fell outside the permissible period as time-barred, on a plain reading ... ... ...

Judicial discipline in reassessment proceedings on identical facts Challenge to reassessment initiation concerning an alleged bogus insurance-brokerage transaction on facts identical to those for the preceding assessment year - HELD THAT: - The Court found that, except for the assessment year, the facts were identical to those in the assessee's own case for the preceding year, in which interference with the reassessment action had been declined. Judicial discipline required the Court not ... ... ...

Validity of reopening of assessment - assumption of jurisdiction u/s 149(1)(b) - prima facie formation of opinion under Section 148A precludes characterization as a roving inquiry - cash withdrawal would fall within the ambit of the expression "asset" as defined under Section 149 or not? HELD THAT:- The application seeking oral hearing and the review petitions were dismissed.... ... ...

Maintainability of appeal on low tax effect - assessees submit that the tax effect in these appeals is less than Rs. 50,00,000/- - HELD THAT:- Having regard to the fact that the appeal of the petitioner was dismissed by the High Court on ground of low tax effect, and this special leave petition has been filed with a reported delay of 468 days with no satisfactory explanation thereof, we decline to entertain this special leave petition and the same is, accordingly, dismissed on ground of delay.... ... ...

Monetary limits for departmental GST appeals - Recurring-issue exception to litigation policy Maintainability of the Revenue appeal against deletion of penalty consequent on relief under Section 128A for short payment of tax for the tax period December 2018 - HELD THAT: - The Board's litigation-policy instructions require departmental appeals below the prescribed monetary limit to fall within a specified exclusion. The residuary expression concerning an issue recurring in nature and/or in... ... ...

Interest under Section 50 - Electronic Cash Ledger credit and payment by debit - Prospective operation of the proviso to Rule 88B(1) - Natural justice-denial of requested personal hearing - Sufficiency of show-cause notice-absence of prejudice Sufficiency of show-cause notice-absence of prejudice - Adequacy of the notice for interest on delayed GSTR-3B returns despite the dispute whether the departmental communication containing the computation formed part of FORM GST DRC-01 - HELD THAT: - Th... ... ...

Restoration of GST registration following non-filing of returns - HELD THAT: - The cancellation was founded solely on non-filing of returns, without any allegation of a dubious process for tax evasion. Continued cancellation would prevent the petitioner from raising invoices and carrying on business, thereby adversely affecting tax recovery; moreover, final tax liability could be determined only after returns were filed. A pragmatic approach therefore warranted conditional restoration of registr... ... ...