Relevant shipping income under the Tonnage Tax Scheme is confined by section 115VI and Rule 11R to core ship-operating or dredging activities and prescribed incidental activities with a direct operational nexus. Scrap, empties, waste oil, exchange differences, insurance claims and provision write-backs qualified, while tender-document receipts, liquidated damages, salary recoveries, training fees and other operating income did not; service charges received differing treatment across the relevant assessment years. Sponsorship for the Maritime India Summit was deductible under section 37(1) because it promoted business activities and had a commercially expedient connection with future operations, despite being described as a donation.

Functional similarity is the primary criterion for selecting comparables under the Transactional Net Margin Method for routine IT-enabled back-office services; companies performing specialised, higher-value services should be excluded despite meeting quantitative filters. Employee-cost filters cannot be applied mechanically where costs are embedded in service expenses or disclosed only at entity level; functionally similar companies should not be rejected solely on that basis. Outstanding receivables may constitute an international transaction, but a separate notional-interest adjustment requires proof of an independent financing arrangement and economic benefit beyond working-capital effects already reflected in the profit-level indicator. The arm's length price is recomputed using the revised comparable set without a separate receivables adjustment.

Intra-group services' arm's length price must be determined using a prescribed transfer-pricing method and substantiated facts, rather than fixed at nil without adequate basis. Agreements, invoices, emails and an independent accountant's cost-allocation certificate supported the rendering of services. Where identical arrangements in earlier assessment years had been accepted and no distinguishing facts existed, pending departmental appeals against those earlier determinations did not displace their relevance. The arm's length price could not be determined at nil, and the transfer-pricing adjustment was deleted.

For reassessment notices for assessment year 2015-16 governed by the pre-1 April 2021 regime, the extended limitation period under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 did not alter the prescribed sanctioning authority. Section 151(2) required prior satisfaction of the Joint Commissioner before issuing a notice under section 148. Approval by the Principal Commissioner could not replace that statutory requirement. A notice issued without sanction from the competent Joint Commissioner was invalid, rendering the consequential reassessment proceedings and assessment order null and void.

Cash deposits of specified bank notes received from members towards crop and tractor loan recoveries cannot be treated as unexplained cash credits under Section 68 where regularly maintained books, member-wise details and the loan-repayment nexus satisfactorily establish their nature and source. The later restriction on specified bank notes does not itself negate the explained character of recorded credits. Taxing such disclosed gross receipts again as unexplained credits would result in double taxation. The receipts are to be treated as business receipts, with deduction under Section 80P available in accordance with law.

Revision jurisdiction requires an assessment order to be both erroneous and prejudicial to Revenue. Absence of enquiry into the actual use of borrowings and the possible capitalisation of related interest can justify fresh examination. Revision cannot, however, direct fishing or roving verification without identifying a specific error causing prejudice. Where the Assessing Officer has examined expenditure records, tax-deduction particulars, contractual materials and treaty applicability, a plausible view reached after enquiry cannot be replaced through revision. Accordingly, fresh examination is confined to the interest-capitalisation issue, while directions concerning tax deduction on payments to Government authorities, miscellaneous expenditure and service-provider charges are unsustainable.

Charitable registration renewal requires verification that any alleged breach of another law concerns legislation applicable to the applicant. Non-registration under the Rajasthan Public Trust Act cannot be treated as material non-compliance where the applicant, including an Urban Improvement Trust, may fall within the statutory exclusion for trusts administered by State-controlled agencies or local authorities. Deficiencies in Form No. 10AB or supporting material that can be cured must be specifically notified, with an effective and reasonable opportunity to provide documents or clarifications. Continuation of registration must then be assessed on complete material after determining the Act's applicability and curing identified defects.

Eligibility for the concessional corporate tax regime under Section 115BAA is examined where Form 10-IC was created and saved on the income-tax portal by the due date but filed late because of a technical glitch. Portal records evidencing a genuine, timely attempt to exercise the option are relevant to the delay. The condonation approach under CBDT Circular No. 6/2022 addresses genuine hardship arising from such technical failures and supports assessment under the concessional regime.

The proviso to Section 12A(1)(ac), effective from 1 October 2024, empowers the Principal Commissioner or Commissioner to condone delay in filing Form No. 10AB for regularisation of provisional registration where reasonable cause is established. An application filed after the prescribed period cannot be rejected solely as time-barred without examining that statutory discretion. A bona fide misunderstanding regarding the duration of provisional registration may require consideration as reasonable cause, although a substantial delay must be specifically assessed by the competent authority. Strict-compliance principles do not override an express statutory power to condone delay.

Section 80G(5B) treats an institution or fund with religious expenditure not exceeding five per cent of its total income during the relevant previous year as eligible for section 80G, notwithstanding religious or religious-cum-charitable objects. Explanation 3 excludes purposes that are wholly or substantially wholly religious from charitable purpose, but does not displace this statutory threshold. Approval cannot be refused solely because of religious objects without verifying actual religious expenditure. Eligibility depends on compliance with the five per cent limit and the remaining statutory conditions.

Cost-to-cost reimbursements received from Indian associated enterprises for third-party event, legal, professional, employee welfare and recruitment expenses were not taxable in India where the underlying activities were performed remotely without employees or personnel being physically present in India. A service permanent establishment under Article 5(2)(l) of the India-USA tax treaty requires services to be furnished or performed in India through employees or other personnel for the stipulated duration. As those cumulative conditions were not met, no service permanent establishment arose and the reimbursements did not constitute income chargeable to tax in India.

Corporate guarantees issued for associated enterprises are treated as international transactions requiring arm's length benchmarking under Section 92B of the Income-tax Act. Where the assessee's bank facility letter provides a reliable internal comparable uncontrolled price, that rate is preferred to unadjusted external bank guarantee rates because bank and corporate guarantees differ in creditworthiness, security and risk. The corporate guarantee commission is restricted to 0.60%, after credit for commission recovered from associated enterprises. Additional TDS/TCS credit requires verification of supporting factual material before relief may be granted.

Section 68 requires an assessee to establish each creditor's identity, creditworthiness and the genuineness of unsecured loan transactions. Financial particulars, banking records, creditor confirmations and repayment details can discharge that burden. Low reported income of lenders and the absence of formal loan agreements do not, by themselves, undermine creditworthiness where no contrary material disproves the evidence. Unsecured loan receipts remain satisfactorily explained when the Revenue does not rebut factual material supporting their genuineness.

Delayed electronic filing of Form No. 10-IE due to uncontroverted portal difficulties does not defeat an assessee's option for the concessional tax regime under section 115BAC where the option was unequivocally exercised. Filing the prescribed form with a revised return shortly after the extended due date constituted substantive compliance because the form was available with the Department and there was no complete non-compliance, abandonment, deliberate withholding, or misuse. The form should be considered and tax liability recomputed under the opted concessional regime.

Timely filing of the return is a mandatory condition for claiming Chapter VI-A deductions, including deduction for co-operative society income, where the return must be furnished by the due date. Processing of a belated return may disallow such deduction. A rectification application cannot restore the deduction because the disallowance resulting from late filing does not constitute a mistake apparent from the record. Consequently, the deduction remains unavailable and rejection of rectification is legally valid.

Rental income should not be increased through an estimated market rent drawn from an incomparable property in another city when no credible local evidence supports a higher rent and the disclosed rent exceeds standard rent. Salary paid to a family member is allowable where sustained business and banking functions establish genuine services, business results support the expenditure, and the recipient offers the salary to tax. Interest on unsecured loans may be commercially expedient despite a higher stated rate than secured borrowings, considering the effective cost of bank finance, flexibility and repayment terms. Unsupported rental estimates and unjustified salary or interest disallowances cannot be sustained where transactions are reasonable and genuine.

Section 167B does not apply to a public charitable society merely because its members' income shares are unspecified. The provision applies where members of an association of persons or body of individuals have indeterminate or unknown shares, whereas a public charitable body serves the public at large and its members have no entitlement to its income. Its income is therefore taxable at the normal rate applicable to an association of persons, rather than at the maximum marginal rate.

Section 87A rebate applied to tax computed on total income for the relevant period, with no express exclusion for tax on short-term capital gains chargeable at special rates under section 111A. The later restriction introduced by the Finance Act, 2025 operated prospectively and did not affect the relevant claim. Automated denial of the rebate could not displace the statutory entitlement. Rebate under section 87A was therefore available against tax payable on eligible short-term capital gains under section 111A.

Banking tax computation addresses arm's-length remuneration, provisions, securities valuation, income recognition and statutory deductions. Technical and IT-enabled services supplied to associated enterprises require value-based arm's-length remuneration; where reliable contemporaneous comparables are unavailable, a 10% cost mark-up is reasonable. Actuarially valued pension and employee obligations arising from past service are accrued liabilities, but leave encashment follows the actual-payment requirement. Banking securities may be consistently valued at cost or market value, whichever is lower, and interest on non-performing assets is taxable only on realisation under the real-income principle. Foreign-branch income remains taxable in India with treaty relief. Deductions for standard-asset provisions, bad debts and eligible business income depend on statutory conditions and verified computations.

Penalty proceedings under section 271D, where no assessment or related order exists during which they were initiated, fall under the six-month limb of section 275(1)(c). The relevant financial-year limb does not apply in that situation. The show-cause notice issued under section 274 read with section 271D constituted initiation of penalty action at the latest. As the penalty order was issued after expiry of six months from the end of that month, it was time-barred, quashed, and the sustained penalty was deleted.