Foreign Tax Credit is substantive relief against double taxation and cannot be denied solely because Form 67 was furnished with a revised return rather than by the original-return due date. Where evidence establishes foreign tax paid and the corresponding foreign income has been offered to tax in India, the evidentiary requirement for the credit is satisfied. For the relevant assessment year, timely furnishing of Form 67 under section 139(1) was directory rather than mandatory, so delayed filing does not defeat an otherwise substantiated claim.

Reimbursement of expatriate employee costs was not taxable as fees for technical services where the Indian associated enterprise exercised control and supervision over the seconded employees and was their real and economic employer during secondment. It paid their salaries, withheld applicable salary tax, and the employees offered that income to tax. As the reimbursement reflected actual salary cost without an income element, and no evidence showed that the Japanese assessee rendered managerial, technical, or consultancy services through the employees, contractual labels could not alter the substantive arrangement. The addition was therefore deleted.

Passenger system solution receipts from automated reservation and related services are not fees for included services under Article 12 of the India-USA Double Taxation Avoidance Agreement where customers receive only remote access to software and data-centre services. The arrangement does not transfer software, technology, technical knowledge, skill, know-how, process, technical plan or technical design, nor does it enable customers to apply the technology independently. Accordingly, the receipts are not taxable in India as fees for included services.

Multilateral Instrument modifications, including the Principal Purpose Test, cannot restrict India-Ireland treaty benefits unless separately incorporated through notification under Section 90(1). Aircraft leases retaining title, residual risks, repossession rights and re-leasing rights with the lessor are operating leases, so rentals are neither interest nor equipment royalty; aircraft are expressly excluded from equipment royalty. Dry-leased aircraft under the lessee's operational possession and control do not create a fixed place permanent establishment for the foreign lessor. Qualifying aircraft-rental income from international traffic is governed exclusively by Article 8 in Ireland, without requiring the lessor to operate the aircraft or prove predominant international use.

Foreign Tax Credit cannot be denied solely because Form 67 was furnished after the return-filing due date. Rule 128(9) does not prescribe denial of credit as a consequence of delayed filing, making the timing requirement directory rather than mandatory. A technical or venial procedural default cannot defeat substantive entitlement to credit under section 90 where no adverse consequence is specified. Where Form 67 is available on record, the assessing authority must verify the underlying eligibility and determine entitlement in accordance with law.

Foreign tax credit cannot be restricted merely because Form No. 67 claimed a lesser amount where details of the foreign taxes paid were otherwise available. The Form No. 67 requirement was treated as directory, making the lesser claim a procedural lapse rather than a bar to the substantive entitlement. Technical considerations should not defeat credit for the full eligible foreign taxes paid, particularly where rectification had granted the full credit. The appellate restriction on foreign tax credit was quashed.

Foreign tax credit under Section 90(2) and the applicable tax treaty cannot be denied solely because Form No. 67 was filed after the prescribed time. Rule 128 and Form No. 67 provide a procedural framework for claiming and verifying relief, while Rule 128(9) does not expressly provide for forfeiture due to delayed filing. Where foreign tax payment, the identity of doubly taxed rental income, and corresponding Indian tax are verifiable, treaty relief remains available. Credit for French taxes paid on rental income is subject to verification and limited to Indian tax attributable to that doubly taxed income. Questions on Article 6 of the India-France treaty and "may be taxed" were left open.

Network fees received under materially similar facts were treated as not constituting fees for technical services under the Income-tax Act, 1961 or Article 13 of the India-Denmark Double Tax Avoidance Agreement. The analysis notes that earlier years had reached the same conclusion and that no change in facts or law was shown. Accordingly, the network-fee receipts were not taxable in India as fees for technical services, and the related addition was deleted.

Cash deposits received as student fees were not treated as unexplained where details of the students paying cash were furnished and the Revenue neither disputed the educational activity nor challenged the stated source. The related addition was deleted. Cash deposits and cash expenses arising in regular business activity, without other identified defects in the accounting entries, did not justify rejection of the books of account or estimation of gross profit. The rejection of books and the gross-profit addition were therefore deleted.

For Assessment Year 2024-25, section 87A is described as allowing a resident individual under section 115BAC(1A) to claim rebate against income-tax on total income, including short-term capital gains taxed at the special rate under section 111A, where the prescribed total-income condition is met. The analysis notes that neither section 87A nor section 111A expressly excludes such gains from the rebate calculation. It contrasts the express restriction for long-term capital gains under section 112A and treats the later prospective restriction as confirming that no equivalent limitation applied for the relevant year.

Business losses from a share broker's dealing errors were accepted as genuine and incurred in the ordinary course of broking, following detailed verification in reassessment. Consistency supported their deductibility because no factual or legal defect in the accepted claim was established. Proprietary securities-trading losses were also allowable where contract notes, global reports and transaction-wise records showed that derivative positions were squared off during the financial year. Compulsory cash settlement further confirmed that the losses were realised rather than notional mark-to-market losses on open contracts. Contemporaneous evidence establishing completed transactions prevails over a mistaken admission when determining whether a business loss is deductible.

Marketing expenditure supported mainly by self-made vouchers may not justify complete disallowance where it relates to ordinary client visits, entertainment, refreshments, travel and related sales activities, and audited books contain no adverse findings. The disallowance was restricted to a limited amount. Insufficient substantiation alone does not constitute misreporting of income under Section 270A(9) unless a specified statutory category, such as misrepresentation, suppression of facts, wholly unsupported expenditure or false entries, is established. As no such category was identified, penalty for misreporting was deleted.

Section 56(2)(viib) applies only where consideration is received for an actual issue of shares. Share application money received from a holding company and later converted into compulsorily convertible debentures, without shares being issued during the relevant year, does not attract the provision. A premium arrangement between a holding company and its subsidiary also does not confer the targeted benefit on an outside party. Genuine salary costs, finance charges and other necessary business expenses remain deductible even where no business income arises in the same year. Consequently, the share-premium addition and disallowance of business expenditure were deleted.

Revaluation of an existing tenancy right through book entries does not constitute unexplained investment where no new asset, funds, or consideration is introduced. Section 69 applies to unrecorded investments whose nature and source remain unexplained; a tenancy right continuously held since 1984 and merely revalued in the books does not meet that condition. Corresponding increases in the asset and partners' capital accounts reflect fair value rather than real income, particularly where no depreciation is claimed on the revalued amount. As revaluation involves no sale, relinquishment, extinguishment, distribution, or other transfer, it also does not amount to a transfer under Section 2(47).

Interest on borrowed funds advanced interest-free to a wholly owned special-purpose subsidiary for acquiring industrial land may be deductible where the advance serves genuine group business needs and commercial expediency. The subsidiary's start-up losses, board-approved interest holiday, and subsequent lease acquisition of the land supported the business purpose. Deductibility is assessed from the perspective of a prudent businessperson and does not require immediate profit or interest income. On the stated analysis, the interest expenditure was allowable under Section 36(1)(iii) of the Income-tax Act, 1961.

TDS credit under section 199 and Rule 37BA is available only to the person in whose hands the corresponding income is assessable. Where post-conversion business income was offered to tax by a partnership firm, an individual could not claim related TDS merely because deductors incorrectly reported the individual's PAN in Form 26AS. The firm may pursue the disputed credit through rectification proceedings, subject to verification that it offered the corresponding income to tax.

For benchmarking under the Transactional Net Margin Method, broad functional similarity supports inclusion of a manufacturing comparable where its functions remained unchanged and it was accepted in subsequent years. The arm's length price requires recomputation after including that comparable. Brought-forward business losses, although allowed while determining income, must also be reflected in the final tax-liability computation. The tax computation therefore requires revision to give effect to those losses.

Online gaming winnings are taxable only to the extent of real net gains after adjusting buy-in amounts, not on cumulative wallet credits representing deposits, redeployed funds, or intermediate transactions. The pre-amendment expression "income by way of winnings" requires identification of actual winnings before the deduction restriction applies. The later net-winnings framework for online games, including provisions on tax deduction and computation, is described as clarifying this principle. Where gross wallet credits are lower than buy-ins and result in a net gaming loss, no taxable income arises from gaming winnings; gross credits cannot be assessed as income.

Delayed appellate claims for statutory exemption may be entertained where substantial justice, the taxpayer's entitlement to lawful relief, and the appellate authority's power to admit a fresh claim support condonation. Compensation received by similarly situated BSNL employees under BSNL VRS-2019 qualifies for exemption under section 10(10B) where no distinguishing factual or legal circumstances exist. Taxable income should be recomputed after allowing the exemption, with any consequential refund granted in accordance with law.

Unaccounted sale-consideration additions require corroborative evidence beyond seized loose sheets, internal spreadsheets, broker material and chats. Where material does not identify purchasers, record cash receipts, or establish a cash trail, and purchaser affidavits denying cash payments remain unrebutted, estimated on-money additions cannot be sustained; varying unit characteristics also defeat uniform sale-rate estimation. Deemed rental income under Section 23(5) applies to eligible unsold units after the prescribed period from building-use permission, without excluding projects commenced before the provision took effect. In the absence of evidence of letting efforts or grounds to alter the accepted estimate, deemed rent at 3% of the value of unsold units remains applicable.