Interest deduction under Section 43B requires loan-wise evidence linking accrued term-loan interest with payments made before the return-filing due date. Consolidated financial statements, ledger accounts and bank statements may not establish that nexus; primary payment evidence, including a bank certificate, may require fresh verification. Expenditure disallowance under Section 14A read with Rule 8D does not arise where no exempt income was earned during the relevant previous year. Accordingly, the interest claim remains subject to factual verification, while the exempt-income-related disallowance is unsustainable.

Rectification or recall under section 254(2) is unavailable where alleged non-consideration concerns a coordinate-bench order that was not available at the hearing and was not specifically relied upon in the grounds or Tribunal record. Failure to consider a jurisdictional High Court judgment may support rectification in appropriate circumstances, but that principle does not permit review of an earlier order through section 254(2). The alleged omission therefore did not constitute an error apparent from the record, and the assessee could not obtain rectification or recall.

Limitation for a rectification application under section 154(7) commences when the intimation is communicated to the assessee, rather than on the date appearing on the intimation. Where the assessee did not receive the intimation and became aware of the demand only through recovery proceedings, limitation cannot be calculated solely from the intimation date. The rectification application therefore could not be rejected as time-barred on that basis; the delay was condoned and the matter was restored for adjudication on merits.

Reversal of unbilled revenue recognised on accrual basis - Disallowance for non-deduction of tax on professional fees paid to non-residents Reversal of unbilled revenue recognised on accrual basis - Allowability of reversal of opening accrued and unbilled revenue, including billing pertaining to earlier years - HELD THAT: - The co-ordinate Bench decision in KPMG Advisory Services Pvt. Ltd [2025 (2) TMI 1415 - ITAT MUMBAI] allowing reversal of unbilled revenue already recognised and offered to... ... ...

Nature of expenditure - recurring trademark fees paid under a non-exclusive, time-bound licence agreement - revenue v/s capital expenditure - "enduring asset" test HELD THAT: - As we find that, as is evident from the extract of the trademark agreement, the sole proprietary rights/ownership over the trademark remain with Dehoco License AG and the assessee is allowed to use the trademark only for the period authorised by Dehoco License AG. Even in this regard, we have considered the decision... ... ...

Validity of Penalty levied u/s. 270A - Ambiguity in notice for penalty for under-reporting of income - Penalty for disclosed income claimed non-taxable on a debatable issue Validity of penalty for under-reporting where neither the penalty notice nor the penalty order identified the applicable clause of section 270A(2) - HELD THAT: - The notice and the penalty order referred generally to under-reporting of income without specifying which of the distinct statutory instances constituted the alle... ... ...

Search assessment against other person - satisfaction under section 153C - Natural justice - cross-examination where assessment rests on seized documents - Unexplained investment - on-money in purchase of residential bungalow Satisfaction for proceedings against other person under section 153C - Delay in recording satisfaction - Validity of proceedings u/s 153C where satisfaction was recorded by both the Assessing Officer of the searched person and the AO of the other person after the seized ... ... ...

Normal corporate tax rate on ineligibility for section 115BAA - Applicable tax rate where the assessee was ineligible for the concessional rate under section 115BAA for failure to fulfil the prescribed conditions, but its turnover for FY 2017-18 did not exceed the statutory threshold - HELD THAT: - Once the assessee accepted its ineligibility for the concessional rate under section 115BAA, its income had to be taxed at the normal rate applicable with reference to its turnover for FY 2017-18. As ... ... ...

TP Adjsutment - selection of most appropriate method - Comparable uncontrolled price method - external comparables - Foreign currency external commercial borrowing - arm's length interest - Delayed export receivables - foreign currency benchmarking Arm's length price of instant-coffee exports to associated enterprises - Most appropriate method - reliability of comparables - Capacity under-utilisation adjustment - selection of the CUP Method based on comparable purchases by the associa... ... ...

Reassessment beyond three years - mandatory threshold for escaped income - Sanction by specified authority for reassessment Validity of reassessment notice issued beyond three years from the end of AY 2018-19 without fulfilment of the statutory threshold for escaped income and sanction by the specified authority - HELD THAT: - Where notice is issued after expiry of three years, fulfilment of the statutory threshold under section 149(1)(b) is a condition precedent to assumption of jurisdiction... ... ...

Educational activity as charitable purpose - Exemption of educational institutions under charitable-trust provisions - Accumulation of charitable income for specified purposes - Disallowance of depreciation not claimed Educational activity as charitable purpose - Exemption of educational institutions under charitable-trust provisions - Eligibility of the Institute conducting banking-industry examinations, training programmes and related educational activities for exemption as an educational i... ... ...

Penny-stock accommodation-entry addition - Gross sale consideration as income - Burden to establish nexus with alleged accommodation entries Addition of undisclosed income from five penny-stock share transactions on the basis of an Investigation Wing report, notwithstanding recorded transactions and the absence of any claimed exempt capital gain - HELD THAT: - Gross sale consideration cannot, without examination of the underlying transactions, be treated as the assessee's income or profit... ... ...

Disallowance u/s 14A r/w Rule 8D - assessee's reasoned suo motu disallowance without a recorded objective dissatisfaction u/s 14A(2) - Proximate Nexus Between Expenditure and Exempt Income - Mechanical Application of Rule 8D HELD THAT: - Section 14A(2) requires the Assessing Officer first to examine the assessee's accounts and record reasoned, objective dissatisfaction as to the correctness of its disallowance; Rule 8D is not the starting point. The existence of exempt income, mainten... ... ...

Unexplained cash credits - unsecured loans - Alleged cash-cheque accommodation entries - uncorroborated electronic material - Disallowance of expenditure relating to exempt income - recording of dissatisfaction Unexplained cash credits - unsecured loans - Identity, creditworthiness and genuineness of loan creditors - additions for unsecured loans where documentary evidence established the identity and creditworthiness of the creditors and the genuineness of the loan transactions - HELD THAT: ... ... ...

Denial of renewal of registration u/s 12AB - trust had not undertaken charitable activities during the relevant years HELD THAT: - Registration concerns the charitable nature of the trust's objects and the genuineness of its proposed activities, and is not an assessment of activities actually undertaken. Where the charitable character of the objects was undisputed, non-commencement of activities could not by itself establish that the activities were not genuine or justify refusal of regis... ... ...

Rectification of mistake apparent from record - Indexed cost of acquisition after compulsory surrender of land on conversion Validity of rectification of long-term capital gains by proportionately reducing indexed cost of acquisition where part of the originally acquired agricultural land was compulsorily retained by the development authority upon conversion into non-agricultural land - HELD THAT: - Rectification jurisdiction is confined to a mistake apparent from the record. The controversy ... ... ...

Characterization of receipt - Capital or revenue character of exclusivity fee for aborted share-transfer joint venture - Disallowance of expenditure relating to exempt income in absence of exempt income Capital or revenue character of exclusivity fee for aborted share-transfer joint venture - Taxability of monetary business benefits - Non-compete receipts - Taxability of the exclusivity fee received upon failure of the proposed joint venture involving transfer of shares in the assessee's ... ... ...

Taxation of registered societies assessed as association of persons - Maximum marginal rate vis-a -vis normal rates under section 167B Applicability of the maximum marginal rate to a society registered under the Societies Registration Act which filed its return in the status of an AOP/BOI - HELD THAT: - The assessee was a registered society which returned income in the status of an AOP/BOI. As the returned income was below the taxable limit, it was eligible for taxation at normal rates under ... ... ...

Bogus purchases of sesame seeds - profit Estimation - HELD THAT: - Where the books of account had not been rejected, the sales stood accepted and the quantitative details furnished by the assessee were not doubted, the entire value of purchases could not be added merely because their genuineness was not substantiated to the satisfaction of the Assessing Officer. In such circumstances, only the profit element embedded in the disputed purchases was liable to be brought to tax. [Paras 13] The ad... ... ...

Penalty u/sec.271B for delayed filing of tax audit report - reasonable cause and bona fide cause for the delay - HELD THAT: - The assessee established a reasonable and bona fide cause for the delay, as the accounts could not be made ready for audit owing to the accountant's illness. The audit report had also been furnished before the return was selected for scrutiny. Consequently, the protection available on proof of reasonable cause applied and penalty was not justified. [Paras 4] The pe... ... ...