Renewal of registration of institutions established otherwise than under an instrument Renewal of registration under section 12AB for religious and charitable institutions having no formal trust deed or memorandum of association - HELD THAT: - Rule 17A(2) separately provides for an applicant created or established under an instrument and one created or established otherwise than under an instrument. The latter must furnish documents evidencing its creation or establishment; consequently, the ... ... ...

Transfer-pricing tolerance band for a single-value internal comparable - Arm's length corporate guarantee commission - Notional interest on outstanding receivables-verification of third-party export credit policy Transfer-pricing tolerance band for a single-value internal comparable - Availability of the notified 3% tolerance band for the transfer-pricing adjustment on sale of two- and three-wheelers benchmarked against the assessee's non-AE and domestic segment - HELD THAT: - Having ... ... ...

Bogus purchases - gross-profit disallowance Disallowance for alleged bogus purchases of industrial chemicals where the corresponding sales were not questioned - HELD THAT: - Having regard to the assessee's wholesale business in industrial chemicals, the possibility of purchases from unregistered dealers could not be ruled out. Since the corresponding sales had not been questioned, the peculiar facts warranted only a lump-sum gross-profit disallowance rather than disallowance of the entire... ... ...

Non-genuine purchases - estimation of addition Disallowance of purchases alleged to be non-genuine where the declared sales and trading results were accepted but the evidence of actual movement of goods was incomplete - HELD THAT: - While the assessee produced invoices, GST returns and stock records, it did not furnish material such as transport documents, e-way bills, delivery challans, weighbridge slips and proof of movement of goods. Conversely, the Department could not disregard all the d... ... ...

Faceless reassessment - jurisdiction of Jurisdictional Assessing Officer - Draft assessment order in reassessment - Deduction for political contribution - Unexplained money - bank transactions - Deduction for ELSS mutual fund investment Faceless reassessment - jurisdiction of Jurisdictional Assessing Officer - Validity of the reassessment order passed by the Jurisdictional Assessing Officer after substantive proceedings had been conducted through the faceless mechanism - HELD THAT: - Though n... ... ...

Additional evidence for unexplained creditor balances and rebate claim - Agricultural income - proof of agricultural activity - Agricultural expenditure - evidentiary support - Share application money - short-term capital gain - Agricultural expenditure - estimation based on prior years Additional evidence for unexplained creditor balances - Unexplained cash credits - Admission and verification of additional ledger accounts and creditor confirmations supporting outstanding creditor balances t... ... ...

Intimatiofn under section 143(1) after issuance of scrutiny notice under section 143(2) Validity of an intimation under section 143(1) issued after notice under section 143(2), and of the scrutiny assessment founded on that intimation - HELD THAT: - Once scrutiny proceedings had been initiated by issuance of notice under section 143(2), processing of the return by an intimation under section 143(1) was legally impermissible. The scrutiny assessment could not validly retain the adjustment made... ... ...

TP Adjustment - aggregation of functionally distinct support -service and subcontract transactions - Notional interest on outstanding receivables - debt-free assessee Aggregation of functionally distinct international transactions - Aggregation for transfer-pricing benchmarking of support services rendered on a cost-plus basis and subcontract receipts arising from a full-risk entrepreneurial segment - HELD THAT: - The two revenue streams arose under separate agreements and involved materially... ... ...

Surrendered amount as undisclosed income for penalty u/s 271AAB(1) - Search penalty notice-specification of statutory default - Limitation for search penalty proceedings Penalty for search-related undisclosed income - Levy of search penalty u/s 271AAB(1) on surrendered income without a finding that it satisfied the statutory definition of undisclosed income - HELD THAT: - A surrender made during search does not, by itself, establish undisclosed income for purposes of section 271AAB. The penal... ... ...

Extrapolation of unaccounted sales without incriminating evidence Addition for alleged unaccounted sales for AY2021-22 based on extrapolation of seized material relating to a later period - HELD THAT: - The seized loose sheets related to the period from 30-12-2021 to 09-02-2022, and the WhatsApp transaction information did not pertain to FY 2020-21 (AY2021-22). AO extrapolated that material to make the addition for the relevant year without supporting evidence. No addition can be made on extr... ... ...

Limitation for reassessment based on third-party search material - Aggregation of expenditure relating to distinct events for extended reassessment limitation Limitation for reassessment based on third-party search material - Validity of the reassessment notice for AY 2013-14 founded on material seized in a third-party search, having regard to the transitional limitation provision - HELD THAT: - Where reopening is founded on material seized from a third party, the applicable pre-amendment mec... ... ...

Jurisdiction u/s 153C - satisfaction regarding bearing of seized material on total income Validity of initiation of proceedings u/s 153C for AY 2020-21 in the absence of satisfaction that the seized material had a bearing on the assessee's total income for that year - HELD THAT: - Section 153C requires the jurisdictional Assessing Officer, after receipt of the seized material, to independently evaluate it and form satisfaction that it is likely to have a bearing on determination of total ... ... ...

Penalty u/s 270A - non-filing of return despite tax deduction at source on salary income - reasonable cause - Assessee disclosed salary income in response to reassessment notice - HELD THAT: - The Tribunal found that the omission to file the original return was unintentional and arose from severe personal and professional hardship. The salary income had already suffered tax deduction at source and was reflected in the departmental records, while the reassessment accepted the income returned by t... ... ...

Validity of proceedings u/s 153C - Deemed date of search u/s 153C - Section 153C proceedings after 1 April 2021 Validity of assessment under section 153C where the seized material was forwarded to the Assessing Officer of the assessee after 1 April 2021 - HELD THAT: - Under the proviso to section 153C(1), the deemed date of search in the assessee's case was the date on which the Assessing Officer of the searched person recorded satisfaction and forwarded the seized material to the Assess... ... ...

Unexplained money addition u/s 69A based solely on spreadsheet entries Applicability of the unexplained-money provision to alleged trading profits reflected only in a spreadsheet, where no money, bullion or other valuable article was found with the assessee - HELD THAT: - The unexplained-money provision requires that the assessee be found to be the owner of the requisite money, bullion, jewellery or other valuable article. Mere entries in a spreadsheet retrieved during search could not sustai... ... ...

Validity of Reassessment - mandatory disposal of objections by speaking order - Jurisdictional defect in reassessment proceedings Validity of reassessment where the assessee's objections to the recorded reasons for reopening were not disposed of by a separate speaking order before completion of reassessment - HELD THAT: - Upon receipt of objections to reopening, the Assessing Officer is required to dispose of them by a speaking order before proceeding with reassessment. Consideration of t... ... ...

Rectification of apparent mistake - retrospective insertion of Section 147A and Tribunal review jurisdiction Recall of the Tribunal's order quashing a jurisdictional Assessing Officer's reassessment notice on the basis of a subsequent retrospective amendment - HELD THAT: - The original decision had been rendered under the law then in force and in accordance with the prevailing jurisdictional legal position. The rectification power is confined to an error apparent when the order was ma... ... ...

Condonation of delay in BSNL VRS-2019 exemption appeals - Exemption of BSNL VRS-2019 ex-gratia compensation under section 10(10B) Condonation of delay in BSNL VRS-2019 exemption appeals - Condonation of substantial delay in appeals claiming exemption for BSNL VRS-2019 ex-gratia compensation - HELD THAT: - The Tribunal noted the consistent condonation of comparable delays in cases of similarly placed BSNL employees and followed the view that applications involving genuine hardship require a pr... ... ...

TP adjustment for notional interest on outstanding trade receivables from associated enterprises - assessee claims to be completely debt-free Whether a separate transfer pricing adjustment towards notional interest on outstanding trade receivables is warranted in the case of the assessee, which claims to be a debt-free company? - HELD THAT: - A completely debt-free assessee which incurs no interest cost on borrowed funds is not liable to a separate transfer pricing adjustment for notional int... ... ...

Additional claim for deduction under section 54F - Appellate power to admit fresh deduction claim Admissibility of the claim for deduction under section 54F, raised before the DRP after it had not been made in the return of income or before the Assessing Officer - HELD THAT: - The restriction on entertaining a fresh claim otherwise than through a revised return governs the power of the Assessing Officer and does not curtail the Tribunal's appellate power to admit an additional claim. Trib... ... ...