Transfer-pricing treatment of corporate guarantees and interest on convertible loans followed consistent prior-year treatment where no factual difference was shown. Payments to non-residents, product, trademark and patent registration expenses, in-house research and development deductions, vehicle depreciation, and partner remuneration were also addressed through established prior-year positions. Exempt-income expenditure disallowance is computed only by reference to investments yielding exempt income; foreign investments generating taxable dividends require exclusion, subject to verification. Foreign-currency royalty receipts already recorded and offered to tax cannot be treated as undisclosed income without supporting material. Employee contributions already disallowed by the taxpayer cannot be disallowed again.

Characterisation of losses on transfer of real-estate allotment rights depends on their actual treatment and supporting evidence, not book entries alone. Where the rights were recorded as short-term loans and advances rather than closing stock, and the claimed business loss was not substantiated, they were treated as capital assets. The resulting loss remained eligible for indexation and carry-forward as long-term capital loss. Where interest is claimed as part of acquisition cost, conflicting positions require fresh computation after the taxpayer is given an opportunity to provide supporting evidence.

Section 56(2)(viib) applies when consideration is received for the issue of shares. Fully and compulsorily convertible debentures retain their character as debentures until conversion; compulsory future conversion does not treat them as shares on the date consideration is received. Neither section 56(2)(viib) nor Rule 11UA creates a deeming rule that classifies unconverted FCCDs as shares. The original issue of convertible debentures and the later issue of shares on conversion are distinct events, and conversion without fresh consideration does not independently trigger the provision. Regulatory or insolvency classifications cannot expand the charging language of the Income-tax Act.

Chapter X confines transfer-pricing adjustments to income from international transactions with associated enterprises and does not permit entity-level enhancement of profits from unrelated-party dealings. Under TNMM, operating margins must reflect appropriate treatment of non-operating marketing and promotional expenses, warranty provisions and bad debts, while business liability write-backs and export incentives linked to export sales are operating income; other operating income must not be excluded twice. Comparable selection for Air Handling Unit manufacturers depends on functional similarity, retaining industrial HVAC and refrigeration manufacturers but excluding final consumer, commercial refrigeration, or mobility-product businesses. .....

Rental receipts credited, accounted for and assessed in a registered partnership firm's hands remain taxable to the firm; partners' capital-account withdrawals do not constitute rental income or transfer ownership of the building. Under a registered joint development agreement granting the developer effective possession, dominion and authority over the property, transfer occurs on execution of the agreement rather than on later delivery of constructed area. The special capital-gains regime for joint development agreements operates prospectively and does not apply to earlier transactions. Rough, unparticularised loose sheets without independent corroboration cannot support additions for undisclosed or underreported rental income. The rental-income additions were deleted and later-year capital-gains additions were set aside.

Section 153D approval of draft search-assessment orders operates as a safeguard against arbitrary assessment and requires independent application of mind to the material and reasoning for each assessment year. A consolidated approval that does not record examination or movement of files, provide separate year-wise approvals, or state reasons is mechanical and fails the prior-approval requirement. Such defective approval invalidates the consequential assessment order; the assessment was therefore treated as void and quashed, while the remaining grounds were left open.

Concurrent factual findings established that the appellant had transferred title to the imported goods and was not their owner. The goods were consigned to fictitious importing firms lacking importer-exporter codes and were routed without proper banking channels, supporting findings of systematic fraud and illegal importation. These factual findings warranted confiscation and penalty and did not raise a substantial question of law. Confiscation, refusal of re-shipment and penalty were sustained, and the customs appeal was dismissed.

Medical relief includes mobile healthcare services delivered to rural and remote populations under Government contracts where the objects remain exclusively charitable and prohibit commercial operation. Contractual receipts, tax deduction at source and surplus generation do not alone convert such activities into business; the decisive considerations are the institution's purpose and deployment of income. Regular charitable registration cannot be refused merely because beneficiary records are held by the Government or payments are made to related persons, absent proof that payments were excessive or unreasonable for services rendered. Cancellation of provisional registration requires specific notice of the statutory ground and an effective opportunity to respond. Regular registration was directed, and the provisional-registration cancellation was set aside.

Section 12AB cancellation requires cogent material showing that charitable activities are not genuine, depart from stated objects, or meet another specified statutory ground. Deficiencies concerning expenditure, application of income, investments or compliance with other laws ordinarily belong in assessment proceedings unless they establish abandonment of charitable purposes. Incidental examination and mobile-tower receipts, educational surplus retained for infrastructure, an unregistered lease, and family management without prohibited private benefit do not alone establish profiteering or specified violations. Registration was restored, and the consequential Form 10AB rejection, based solely on cancellation, was reversed with a direction to grant appropriate registration.

Export incentives directly connected with export activity are treated as operating income when computing the tested party's profit level indicator under the Transactional Net Margin Method. Excluding such incentives can distort the tested party's operating margin, particularly where incentives received by comparable companies are included in their operating income. The operating and arm's-length margins should therefore be recomputed after including eligible export incentives in the tested party's operating results.

Search material found at a third party's premises must be used for assessment or reassessment under section 153C, not a regular section 143(3) assessment; where the relevant assessment was pending and abated, the section 143(3) assessment was invalid and quashed. Section 14A read with rule 8D does not permit expenditure disallowance without exempt income, and the corresponding book-profit adjustment was deleted. Foreign-exchange loss on revenue-account liabilities, recognised under Accounting Standard-11, is allowable as business expenditure. An addition based solely on undisclosed third-party material, without disclosure or cross-examination, breaches natural justice; search presumptions do not apply against the assessee, and the capital-gains addition was deleted.

Food safety examination of imported roasted areca nuts must be conducted by the competent Food Safety Authority under the applicable statutory procedure where the inquiry concerns the product's nature, composition, roasting status, moisture content and fitness for human consumption. Representative samples of the imported consignment are to be forwarded to the jurisdictional food safety authority for testing of those parameters. Customs authorities may also send samples to SIIB and may take further action in accordance with law based on the competent authority's report and other available material.

Customs exemption-notification amendments operate prospectively unless they expressly provide otherwise. Where bills of lading predate an amendment's commencement, that amendment cannot govern the imports or justify refusing to consider provisional release of highly specialised equipment. Provisional release must instead be considered under the Customs Act, with lawful conditions imposed where necessary. Goods may be released upon compliance with those conditions, while adjudication on the merits continues.

Customs exemption notifications operate prospectively unless they expressly provide retrospective effect; an amendment effective after the relevant Bills of Lading cannot govern those imports. For imported secondhand highly specialised digital multifunction print and copying machines, provisional release may be considered under applicable law, subject to appropriate conditions and compliance, without prejudice to adjudication on the merits.

Show-cause notice requirements preclude adjudication on material factual and legal grounds not alleged in the notice. Findings that an authorised courier was the consignor or exporter, lacked consignor authorisation, or knowingly participated in prohibited exports could not stand where the notice alleged only unauthorised outsourcing and deficient KYC compliance. KYC rules required reliable, independent and authentic verification material, not necessarily two identity documents; a genuine driving licence could suffice absent evidence that identity or address was unverifiable. Physical consignment pick-up was not a regulated assessment or clearance function, so its outsourcing did not establish a breach. Mere courier declarations and concealed prohibited goods did not prove knowledge, intent or facilitation; the penalties and impugned order were set aside.

Automotive sensor classification depends on the imported article's objective characteristics and independent function: temperature sensors that only transmit resistance signals fall under the specific thermistor entry; exhaust-gas sensors performing electrochemical analysis fall under gas-analysis apparatus; a brake-pedal sensor remains a Chapter 90 measuring or checking instrument rather than a brake part; and a Hall-effect wheel sensor that generates pulses is electrical apparatus, not a speed-measuring instrument. Specific tariff headings prevail over residual headings. Completed nil-duty assessments cannot be reclassified through duty-recovery proceedings without a proposed duty liability. Alternate FTA relief requires proof of eligibil.....

Penalty for Customs Broker involvement in undervaluation of imported premium-brand engines was reduced as excessive. Although the substantially understated declared value warranted a penalty, the broker had sought first check of the consignment, bringing the issue to the department's notice. This bona fide conduct, the finding that the broker was not wholly responsible for the undervaluation, and the penalty already imposed in licensing proceedings supported a reduced penalty under the Customs Act. The appeal was partly allowed.

Customs bears the burden of proving a proposed reclassification where it seeks to displace an importer's self-assessed tariff classification. Detailed specialised laboratory testing identifying the goods as Naphtha or Light Naphtha was treated as more probative than departmental reports lacking vital comparative tests under the most akin test. Natural Gasoline Liquid falls within the generic description of Naphtha; therefore, the declared classification of imported Full Range Naphtha could not be displaced. WhatsApp chats and other mobile-phone material require the prescribed electronic-evidence certificate and reliable proof of statutory compliance. Unexamined statements, unavailable for cross-examination, and uncorroborated electronic material could not establish alleged origin or import-description misdeclaration.

Release of buyback escrow under the exceptions to Regulation 15B(8) does not bar an independent fraud inquiry under the PFUTP Regulations, because the provision concerns escrow forfeiture or release rather than whether fraud occurred. Internal departmental file notings remain non-binding unless converted into and communicated as a final decision of the competent authority. Fraud must be proved on a balance of probabilities through objective, corroborative circumstances, including trading patterns, contemporaneous records and attributable conduct. The fraud allegation was remanded for fresh adjudication after examination of trading-data discrepancies, inconsistent investigation reports and corroborative material; the appeals were partly allowed.

Section 60(2) of the Insolvency and Bankruptcy Code requires an insolvency application against a personal guarantor to be filed before the same NCLT Bench where the corporate debtor's CIRP or liquidation is pending, overriding the territorial criterion in Section 60(1). This alignment supports consolidated proceedings, consistency and avoidance of conflicting outcomes. Rule 16(d) of the NCLT Rules permits the President to transfer such proceedings between Benches when necessary to implement Section 60(2); the power is not limited to Benches within one territorial location. Proceedings filed before a Bench lacking this jurisdiction may be quashed, with liberty to file before the competent Bench.