Disallowance of exemption claimed u/s 11 - Charitable exemption - belated furnishing of audit report in Form 10B Disallowance of exemption claimed u/s 11 - no Opportunity to contest Form 10B-based adjustment - Denial of natural justice - HELD THAT: - The Schedule of variance accompanying the intimation expressly disclosed that the adjustment resulted from failure to e-file Form 10B within the stipulated period. The assessee had also addressed that very issue in its rectification application a... ... ...

Transfer pricing of interest on compulsorily convertible debentures - Internal comparable transaction - Recharacterisation of compulsorily convertible debentures as equity Arm's length price of interest on compulsorily convertible debentures - Internal comparable transaction - Recharacterisation of compulsorily convertible debentures as equity - Transfer-pricing adjustment on interest paid on compulsorily convertible debentures to the associated enterprise, determined at nil by treating t... ... ...

Natural justice in assessment proceedings denied - Unexplained money-cash deposits without source and cash trail - Characterisation of land-facilitation receipts as business income - GST-disclosed sales as undisclosed business receipts Denial of Natural justice in assessment proceedings - Validity of the assessment on the allegation that statutory notices, replies and material furnished by the assessee had not been duly considered - HELD THAT: - The record showed repeated opportunities, speci... ... ...

Addition u/s 56(2)(viib) - receipt of consideration for issue of shares - Share valuation under Rule 11UA - DCF method and substitution by NAV Addition u/s 56(2)(viib) - receipt of consideration for issue of shares - Applicability of section 56(2)(viib) to credit of securities premium resulting from reclassification of compulsorily convertible preference shares previously recorded as borrowings, without receipt of consideration during the year - HELD THAT: - Section 56(2)(viib) predicates rec... ... ...

Unexplained investment in immovable property - source through gift received by spouse - Unexplained mutual fund investments - source from salary savings and bank account Unexplained investment in immovable property - Gift received by spouse from her mother - source of the spouse's contribution towards purchase of the immovable property, claimed to arise from a gift received from her mother, was satisfactorily explained - HELD THAT: - The donor's confirmation identified liquidation of ... ... ...

Penalty proceedings u/s 271(1)(c) - non-specification of charge in statutory notice - Defective penalty notice - penalty notices retaining both the concealment-of-income and furnishing-inaccurate-particulars charges HELD THAT: - The notices invoked both statutory defaults without striking out the inapplicable charge and, therefore, failed to inform the assessee of the precise basis on which penalty was proposed. Applying the High Court ruling in SHRI BABUJI JACOB [2020 (12) TMI 574 - MADRAS H... ... ...

Deduction u/s 80P(2)(a)(i) - interest on Nationalised/Scheduled Bank deposits of a co-operative credit society Eligibility for deduction under section 80P(2)(a)(i) of interest earned by a co-operative credit society on deposits with Nationalised/Scheduled Banks from funds not immediately required for lending to its members - HELD THAT: - Interest earned on deployment of funds not immediately required for lending by a society engaged solely in providing credit facilities to its members is attr... ... ...

Unexplained cash credits - Cash gifts from relatives - Source of source - burden of proof Addition as unexplained cash credits in respect of cash gifts received from close relatives, despite donor confirmations and supporting financial records - HELD THAT: - The assessee established the donors' identity through their responses to statutory notices and furnished gift deeds, returns, financial statements and confirmations. Once these primary evidences were produced, the initial burden stood... ... ...

Reassessment notice - limitation and approval by specified authority - Political-party donation deduction - genuineness of contribution Reassessment notice - exclusion of response period from limitation - Specified authority for reassessment approval - Validity of the reassessment notice for A.Y. 2019-20 where the period allowed for responding to the notice under section 148A(b) was excluded in computing the three-year limitation - HELD THAT: - The period allowed to the assessee for respondin... ... ...

Deduction u/s 80-IA(4) for infrastructure development - Developer vis-a -vis works contractor Eligibility of an EPC contractor executing Government water, sewage and industrial-effluent infrastructure projects for deduction under section 80-IA(4), notwithstanding its description as a contractor - HELD THAT: - Entitlement to the deduction depends upon the substance of the activities undertaken and fulfilment of the statutory conditions, and cannot be denied merely because the enterprise is des... ... ...

Limitation for appeal - exclusion of High Court pendency period - Section 69A addition - omission to disclose income from other sources in return schedule Limitation for appeal - exclusion of High Court pendency period - Delay in filing the appeal in view of the High Court's directions permitting filing without reference to limitation and excluding the period of pendency - HELD THAT: - The Tribunal accepted the effect of the High Court's directions that the appeal be entertained witho... ... ...

Capital gains - Cost of improvement of jointly owned property - Apportionment of deductible expenditure to ownership interest - Allowability of the entire cost of improvement claimed by a co-owner while computing capital gains on transfer of only his proportionate interest in jointly owned land - HELD THAT: - The improvement was admittedly made to the property as a whole, and its benefit attached to the entire jointly owned asset rather than exclusively to the assessee's interest. Mere pa... ... ...

Sufficient cause for condonation of delay - Assessment without effective opportunity of hearing Sufficient cause for condonation of delay - Condonation of delay in the cooperative society's appeal against the assessment order - HELD THAT: - The COVID-19 impact, limited staff strength, flood damage and relocation of the society, and change of advocate constituted sufficient cause for the delay. The refusal to condone the delay was therefore unsustainable. [Paras 14] The refusal to condo... ... ...

Ad hoc disallowance of livestock purchases - Validity of ad hoc disallowance of purchases of live animals treated as business income, despite supporting banking records, supplier confirmations and purchase details HELD THAT: - AO did not specify the documents allegedly not furnished by the assessee, nor point out any defect or shortcoming in the material produced; except for notices issued to suppliers, no further enquiry was undertaken. Live bovine animals were exempt from GST and suppliers ... ... ...

Revisionary jurisdiction for inadequate inquiry into TDS on commission expenditure - revisionary jurisdiction over the assessment of commission and brokerage expenditure where the Assessing Officer made only a generic inquiry regarding tax deduction at source HELD THAT: - Mere calling for and furnishing details of TDS did not establish that the Assessing Officer had examined the material discrepancy between the commission and brokerage expenditure reflected in the financial statements and the... ... ...

Deductibility of delayed employees' PF/ESI contributions Rectification based on alleged typographical error in Form 3CD - HELD THAT: - The asserted reporting error in the tax audit report required factual verification. The Tribunal therefore did not adjudicate the claimed error on merits. [Paras 7] The issue was remanded to the Assessing Officer for verification, and the related grounds were allowed for statistical purposes. Deductibility of delayed employees' PF/ESI contributio... ... ...

Penalty u/s 271AAB - specificity of statutory notice - Defective notice for search-related penalty - Reasonable opportunity in penalty proceedings Validity of notices initiating penalty for undisclosed income found in search proceedings u/s 271AAB, where the applicable statutory clause and rate were not specified - HELD THAT: - As section 271AAB attracts the procedural requirement of section 274, the notice must disclose the precise charge so as to afford a meaningful opportunity of hearing. ... ... ...

Unexplained cash credits - unsecured loans - Discharge of onus under section 68 - Reliance on retracted third-party statements Unexplained cash-credit additions for unsecured loans from corporate lenders alleged to be accommodation-entry providers-sufficiency of proof of identity, creditworthiness and genuineness - HELD THAT: - The lower authorities had treated the loans as accommodation entries principally on a third-party search statement. That statement stood retracted, and the subsequent ... ... ...

Addition u/s 68 - unexplained credits in relevant previous year - Unsecured loans - opening balances Addition u/s 68 in respect of unsecured-loan balances brought forward from an earlier year, rather than credits received during the relevant previous year - HELD THAT: - Section 68 applies to sums credited in the books during the relevant previous year, and opening balances brought forward from earlier years cannot be subjected to addition in the current year. The assessee established through ... ... ...

SEZ-unit profit deduction on voluntary transfer-pricing adjustment - Ad hoc disallowance of expenditure relating to exempt dividend income - Deductibility of year-end foreign-exchange loss - Functional comparability of ITeS service providers SEZ-unit profit deduction on voluntary transfer-pricing adjustment - Entitlement to deduction for SEZ-unit profits on the voluntary transfer-pricing adjustment disclosed in the return - HELD THAT: - The prevailing Tribunal decisions and the jurisdictional... ... ...