Section 14A disallowance where no exempt income is earned HELD THAT: - The Assessing Officer did not dispute that no exempt income had been earned during the year. Following the High Court decisions GVK Project & Technical Services Ltd. [2018 (5) TMI 1786 - DELHI HIGH COURT] wherein the Hon'ble High Court has reiterated its view in the case of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] the Tribunal held that expenditure disallowance under section 14A is impermissible where no exemp... ... ...

Summary adjustment for mismatch between return and Form 10BB - Charitable exemption where statutory application and accumulation requirements are met Summary adjustment for mismatch between return and Form 10BB - Charitable exemption despite curable reporting discrepancies - Denial of charitable exemption to a trust registered under section 12A because of discrepancies between its return of income and Form 10BB. - HELD THAT: - The discrepancies in the return and audit report, attributable to ... ... ...

Concessional corporate tax option under section 115BAA - condonation of delayed Form No. 10-IC - Rectification of tax computation Entitlement of a domestic company to concessional taxation u/s 115BAA where Form No. 10-IC was furnished after the prescribed due date but the delay stood condoned under CBDT Circular No. 19/2023 - HELD THAT: - The Circular condoned delay in furnishing Form No. 10-IC for Assessment Year 2021-22 where the return was timely filed, the option u/s 115BAA was selected i... ... ...

Nature of expenditure - Capital or revenue expenditure -recruitment and training of employees - communication service charges - Tax deduction at source -reimbursement of expenses to holding company Nature of expenditure - Recruitment and training expenditure incurred for personnel required in the assessee's existing IT-enabled services business - HELD THAT: - Expenditure on recruitment and training does not create a capital asset merely because trained employees may continue to serve the ... ... ...

Unexplained cash credit - alleged penny-stock gains - onus to prove HELD THAT: - The assessee had furnished contract notes, demat-account details and bank-account evidence supporting the share transactions. The Assessing Officer neither adversely commented on that evidence nor conducted an independent inquiry connecting the assessee or the broker with alleged price rigging. In the absence of cogent material establishing the assessee's involvement in price manipulation, general information... ... ...

Taxability of food-grain trading commission as unexplained money - Estimation of food-grain trading commission income Assessment of cash linked to food-grain trading transactions as unexplained money rather than commission income, and the applicable rate of commission - HELD THAT: - The Tribunal found that the seized material and transactions related to food-grain trading undertaken for parties and that the receipt had been treated as commission by the Assessing Officer. Once its nature as co... ... ...

Unexplained cash credits - cash deposits under presumptive taxation - disclosed business receipts - Sustainability of an unexplained cash-credit addition for cash deposits during demonetization by a textile retailer assessed under presumptive taxation - HELD THAT: - The Hon'ble Punjab & Haryana High Court in the case of CIT v. Surinder Pal Anand [2010 (6) TMI 404 - PUNJAB AND HARYANA HIGH COURT] Court held that where an assessee is not required to maintain books of account and income is compu... ... ...

Registration of charitable institution - effective date - Conditional registration u/s 12AB - Opportunity in registration proceedings Effective date of registration u/s 12AB for a charitable society after rejection of its initial application for alleged non-furnishing of information - HELD THAT: - The society had previously held registration and its charitable status had been upheld in earlier proceedings. In those circumstances, the authority ought to have duly considered the initial applica... ... ...

Faceless reassessment jurisdiction prior to notification of statutory scheme Validity of faceless reassessment completed before notification of the e-Assessment of Income Escaping Assessment Scheme, 2022 - HELD THAT: - The statutory scheme for faceless assessment of income escaping assessment under section 151A was notified only on 29-03-2022 and became operative upon its publication. The pre-existing faceless assessment regime did not authorise faceless reassessment. Consequently, the Facele... ... ...

Sanction by specified authority for reassessment beyond three years - Collateral challenge to reassessment jurisdiction in revision proceedings Sanction for reassessment beyond three years - Specified authority u/s 151(ii) - Validity of the statutory approvals for reassessment of loan transactions after expiry of three years from the end of the relevant assessment years - HELD THAT: - Section 151 creates a time-linked hierarchy, and approval under section 151(ii) is a jurisdictional precondit... ... ...

Service of reassessment notice by affixture - Preclusion of objection to service under section 292BB Validity of service of the reassessment notice by affixture at an address other than the address recorded in the registered sale deed - HELD THAT: - The notice was initially sent to an address different from that available in the registered sale deed. The record of affixture did not establish due diligence, verification by local witnesses or neighbours, or the correct property at which affixtu... ... ...

Accrual of agency reimbursement income - Prior-period expenditure - crystallisation of liability - Business deduction for celebratory and promotional expenditure - Revenue or capital expenditure - replacement of UPS batteries - Business expenditure reimbursed by principals - Shared group expenditure - documentary substantiation - Commission to field agents - inapplicability of NBFC norms - Deemed dividend - agency collections pending remittance - Business expenditure - depositor grievance-redres... ... ...

Stamp duty value on date of agreement under section 56(2)(x) - Adoption of stamp duty value for properties purchased under prior Banakhat agreements u/s 56(2)(x) - HELD THAT: - The proviso requires adoption of the stamp duty value prevailing on the date of the agreement where consideration, or part thereof, has been paid by account-payee cheque or through banking channels on or before that date. Though the sale deeds referred to advance payments, they did not disclose the dates of the Banakha... ... ...

Deduction for National Long Distance telecommunication undertaking - Audit certification of eligible undertaking accounts - Depreciation on computer-integrated Gateway Digital Switch - Block-of-assets depreciation despite technological obsolescence - Interest from temporary deployment of business funds - Disallowance relating to exempt income in absence of exempt income - Depreciation on commercial user rights in leased land - Depreciation on acquired goodwill - Interest on refund until actual p... ... ...

Reassessment based on unverified tax-evasion petition - Independent tangible material suggesting income escapement Validity of reassessment for alleged unexplained investment in immovable properties initiated solely on an anonymous and unverified tax-evasion petition - HELD THAT: - The information underlying the reopening neither identified the properties nor disclosed material particulars concerning their acquisition, valuation, or alleged source of investment. It therefore furnished no live... ... ...

TP Adjustment - TNMM comparability of ITES providers - functional and turnover filters Appropriateness of the TPO-selected comparables for determining the arm's length price of administrative support/ITES services under TNMM - HELD THAT: - The Tribunal held that comparability under TNMM must account for the functional profile, scale, risk profile, intangible and brand advantages, and reliability of financial results. Accentia Technologies, Infosys BPO, TCS E-Serve and Fortune Infotech wer... ... ...

Loss arising from embezzlement in a charitable institution Disallowance of the loss claimed by a charitable blood bank on account of embezzlement by persons managing its affairs - HELD THAT: - The detailed allegations recorded in the FIR and the assessee's conduct were material to establish the embezzlement; the ultimate outcome of the criminal proceedings was not determinative. Such misappropriation could not be regarded as a benefit extended to specified persons, and the resulting loss ... ... ...

Disallowance for non-deduction of tax on online gaming winnings - Tax deduction at source on online gaming promotional bonuses - Computation of income pursuant to subsisting assessment and appellate orders - Deduction of corporate social responsibility payments as eligible donations - Deductibility of employee stock option plan expenditure Tax deduction at source on online gaming winnings - Disallowance for non-deduction of tax - Disallowance of player-funded winnings and sponsored prizes fro... ... ...

Reassessment of foreign remittances on change of opinion Applicability of the third proviso to section 147 where an appeal against a section 201 order was pending - HELD THAT: - Proceedings under section 201 for recovery of tax from a person deemed to be in default operate in the tax-collection and recovery framework and do not compute the assessee's income. A reassessment disallowance of expenditure for failure to deduct tax and proceedings under section 201 therefore concern distinct su... ... ...

Personal effects - motor car held for personal use - Capital loss on transfer of personal effects - Capital asset - actual user versus accounting treatment - Allowability of long-term capital loss on sale of a motor car treated by the assessee as a personal-use asset - HELD THAT: - Movable property held for the assessee's personal use is a personal effect excluded from the definition of capital asset; the applicable test is its intimate and common personal use. Assessee had not claimed de... ... ...