Disallowance of related-party purchases under section 40A(2)(b) cannot rest on Form 3CD disclosures for a preceding assessment year. The relevant assessment year had no tax audit or Form 3CD, while the assessing authority relied on related-party purchase reporting from an earlier year. As the Revenue did not rebut this mismatch, the disallowance lacked a factual basis and was deleted.

Unexplained cash deposit addition required fresh verification where the assessee consistently claimed that the deposit was a redeposit of an earlier cash withdrawal. Assessment notices were returned unserved, affixture service indicated that she did not reside at the stated address, and the final notice was served on her daughter. Because the explanation had not been examined during assessment, the addition was remitted to the Assessing Officer for fresh adjudication after providing the assessee an adequate opportunity to substantiate the source of cash.

Audited and completed books supported by purchase bills, financial statements, tax audit reports, disclosed sales and recorded cash balances should not be rejected merely because survey-time records were incomplete or sales and cash balances increased compared with earlier years. A sales summary cannot be disregarded without defects in the underlying daily records, particularly where invoices are available and reported sales have been accepted in VAT returns. Cash deposited during demonetisation is explained where it arises from recorded cash sales, is supported by adequate stock, and no adverse material disproves the sales or cash balance. The additions for estimated business profit and unexplained cash deposits were deleted, and declared income was accepted.

Documented penny-stock capital-gains transactions cannot be treated as unexplained solely on investigation-wing information where the taxpayer provides purchase and sale records, broker details, bank records, demat statements and contract notes. Independent verification of those materials, evidence from brokers or banks, examination of the company's financials, or proof that the taxpayer received accommodation entries is required to displace the documentary record. A mismatch between the transaction value adopted in assessment and broker-supported records further weakens the addition. Additions for unexplained credits and estimated commission expenditure were deleted because suspicion did not constitute cogent contrary evidence.

Departmental monetary limits bar Revenue appeals arising from regular assessments where the tax effect is below the applicable threshold; the international-taxation exception for tax-treaty disputes is confined to TDS/TCS litigation and does not extend to assessments under Section 143(3) read with Section 144C(3). The appeals were therefore not maintainable. Consideration for software and software upgrades was not taxable as royalty because no material displaced the appellate finding applying the governing Supreme Court decision. The deletion of royalty additions was sustained for all relevant assessment years.

Article 12(4)(b) of the India-USA DTAA treats technical or consultancy receipts as fees for included services only where they make available technical knowledge, experience, skill, know-how or processes, or involve developing and transferring a technical plan or design. Access to product analytics software and related support provided customers with software-generated analytics and commercial information, but did not transfer source code, technical processes, or the ability to apply the underlying technology independently after the subscription. Use of sophisticated software or receipt of its reports does not itself meet the make-available requirement. The receipts are therefore not taxable as fees for included services.

Assessment limitation depends on completion of the assessment and determination of tax liability within the statutory period; subsequent dispatch or service does not invalidate a timely order. For unsecured loan credits, prior-year credits cannot be added in the relevant year, but PAN, return and confirmation alone do not establish identity, genuineness and creditworthiness for current-year credits; unverified lender evidence requires further enquiry and fresh adjudication. For valuation of transferred land, its legal character at the transfer date governs. Land remaining agricultural in revenue records and not converted by a competent authority cannot be valued using residential circle rates despite surrounding development or lack of cultivation.

Pendency of a writ petition, later withdrawn to pursue the statutory appellate remedy, constituted sufficient cause for delay in filing the first appeal. Rejecting the appeal solely as time-barred without considering the explanation and condonation material was improper. The delay was condoned, and the first appellate authority was directed to admit and decide the appeal afresh after granting an opportunity of hearing.

Denial of a requested video conference hearing in faceless appellate proceedings breaches principles of natural justice where no valid reason is given. The applicable framework requires a requested personal hearing to be afforded, preferably through video conference. As the hearing request was not granted, the cash-credit addition was not examined on merits. The appellate order was set aside for fresh adjudication after granting the requested hearing.

Interest disallowance depends on proving business purpose or commercial expediency for interest-free loans and partnership-capital advances, while advances supported as business-related may qualify for relief. Work-in-progress transferred at book value does not permit imputed profit, although attributable finance costs require capitalisation; shared sponsorship costs may be apportioned. Further expenditure disallowance against exempt income is restricted by exempt income and requires recorded dissatisfaction with the taxpayer's accounts. Bad-debt write-off may be allowed when recorded in the books, but unsupported debts may be disallowed. Notional interest requires actual accrual rather than presumptions. Consultancy and cash-imprest claims require verification of their character and accounting treatment. Deemed dividend requires the recipient to hold the requisite beneficial shareholding in the payer company.

Section 80-IA(9) prevents overlapping Chapter VI-A deductions only to the extent profits have already received a deduction and limits aggregate deductions to eligible business profits. It does not require a deduction under Section 80-IB to be reduced from gross total income or business profits when computing the Section 80-HHC deduction. Applying this interpretation, the Tribunal's order was set aside and the assessment was remanded for tax recomputation without reducing business profits by the Section 80-IB deduction for Section 80-HHC purposes.

Deduction under Section 80-IB must be considered while computing deduction under Section 80-HHC in accordance with the subsequently pronounced Supreme Court decision identified in the text. The Tribunal's contrary approach to computing these deductions could not stand. The tax computation was remitted to the Assessing Officer for fresh determination consistent with the binding Supreme Court ruling.

An area of 1.0241 hectares has been de-notified from the Information Technology and Information Technology Enabled Services Special Economic Zone at Pallipuram Village, Cherthala Taluk, Alappuzha District, Kerala. The de-notification covers specified survey-number parcels and was issued after the statutory requirements for modification of the notified SEZ area were found fulfilled. The SEZ's resultant notified area is 12.0547 hectares.

The Central Government rescinds the earlier notification establishing an Information Technology and Information Technology Enabled Services Special Economic Zone at Kistapur Village, Chevella Mandal, Ranga Reddy District, Telangana. The rescission de-notifies the entire notified area of the Special Economic Zone. Actions taken or omitted before the rescission remain unaffected, preserving the legal effect of prior acts under the earlier notification.

Form ITR-BN is inserted in Appendix IV for filing block-period returns under the Income-tax Rules, 2026. The amendment applies to searches initiated or requisitions made on or after 1 April 2026 and is deemed effective from that date. The form requires a verified declaration by the competent person and provides for Tax Years Y6 to Y1, Y0 and, where applicable, Y+1. It prescribes the block-period treatment for other persons, permits provisional figures for specified unaudited periods without treating them as regular returns, and requires such income to be included in the relevant regular return. Undisclosed income from specified international or domestic transactions for part tax years is excluded from the block return.

Section 49 warehousing requests for imported goods awaiting clearance are digitised through the ICEGATE portal and ICES. Importers may submit fresh applications, provide Bill of Entry and warehouse details, upload supporting documents, track status, respond to Customs queries, and obtain a system-generated request number. Customs officers process requests through the Section 49 Approval option, with separate codes for fresh warehousing and extension requests, and may approve applications or raise queries after reviewing records. Approved storage permissions may be extended for 30 days at a time, including successive 30-day periods, subject to approval by the concerned Customs officer.

Regional Rural Banks are regularly reviewed for financial performance, technology upgradation, MSME lending, loan diversification and financial inclusion in rural and remote areas. Their financial health improved over recent years, with growth in deposits, loans, credit-deposit ratio, net worth and capital adequacy, alongside improved asset-quality indicators. Financial-inclusion targets for bank-account access, micro-credit, insurance and pension schemes are set and periodically monitored to extend formal financial services.

Public sector banks reported improved balance-sheet health, rising business and lending, higher profits, stronger capital adequacy, and lower gross non-performing assets through FY 2025-26. Credit expanded across retail, agriculture, MSME, and infrastructure segments. Emergency Credit Line Guarantee Scheme 5.0 provides guarantee coverage to member lending institutions for eligible additional credit facilities addressing short-term liquidity mismatches, with full coverage for MSMEs and differentiated coverage for non-MSMEs and scheduled passenger airlines. Airline assistance is linked to peak credit outstanding and may require proportionate promoter or owner equity contribution above the applicable threshold.

Toy-sector measures combine quality regulation, import-duty changes, domestic manufacturing support, export facilitation, and promotional initiatives. The National Action Plan for Toys covers toy design, learning-oriented toys, quality monitoring, restrictions on unsafe imports, indigenous clusters, and domestic production. A Quality Control Order and BIS licensing framework support compliance with toy-safety standards. Cluster assistance, startup recognition, export-duty remission support, and zero-duty market access under specified trade agreements seek to strengthen competitiveness, while stated measures are associated with improved quality conformity, lower imports, and increased exports.

For sections 54(2) and 54F(4), the period for utilising capital gains or depositing them under the Capital Gains Accounts Scheme includes the extended return-filing period under section 139(4), rather than being limited to section 139(1). Purchase of a vacant plot may support exemption where a residential building is constructed on it within the prescribed period. As the record did not establish whether construction was completed by the relevant date, factual verification is required; exemption is available if the residential building is found to have come into existence by then.