Tax deduction at source on leave travel concession involving foreign travel - Effect of binding interim directions on tax-deduction obligations - Assessee in default Liability of the assessee-bank to be treated as an assessee in default for non-deduction of tax on leave fare concession reimbursements involving foreign travel during the operation of the interim directions of the Madras High Court - HELD THAT: - Though leave travel concession involving a foreign leg was not exempt, the Tribunal... ... ...

Leave encashment exemption for non-Government employees u/s. 10(10AA)(ii) - Enhanced exemption limit under CBDT notification Eligibility of a retired NABARD employee for exemption of leave encashment up to the enhanced limit notified by the CBDT - HELD THAT: - The Tribunal noted that various Benches like in Sujata Gupta [2025 (7) TMI 1986 - ITAT JAIPUR], Ram Charan Gupta [2023 (6) TMI 1476 - ITAT JAIPUR] and Ashok Arora [2025 (9) TMI 505 - ITAT DELHI] had held non-Government employees entitle... ... ...

Reassessment - supply of recorded reasons and disposal of objections - Alleged bogus long-term capital gains - evidentiary burden Unexplained cash credit on share-sale proceeds - Consequential commission addition - HELD THAT: - The assessee established the acquisition and sale of the shares through contemporaneous documentary evidence, including banking records, demat records, contract notes and payment of STT. The interim regulatory directions concerning Moryo Industries Limited had been rev... ... ...

Maximum marginal rate on income of public charitable trusts u/s 167B - beneficiaries' shares were indeterminate - HELD THAT: - In the case of National Association of Interlocking Surgeons [2025 (2) TMI 540 - ITAT PUNE] the Pune Tribunal, after examining CBDT Circular No. 320 dated 11.01.1982 and various decisions, including the decision of Dr. Shalmali Khasbardar Foundation vs. ITO (Exemption) [2024 (9) TMI 1699 - ITAT MUMBAI] held that the provisions of section 167B of the Act have no appli... ... ...

Bogus long-term capital gains on alleged penny-stock share transactions - Unexplained cash credit based on investigation report HELD THAT: - The assessee substantiated the purchase and sale through contract notes, demat records, banking channels and payment of STT. The prolonged holding of the shares, including through a period of higher market prices, supported the assessee's status as an investor. Assessing Officer made no independent inquiry and brought no material connecting the as... ... ...

Taxation of immovable property acquired below stamp duty value - Agreement-date stamp duty valuation on part payment Addition u/s 56(2)(x) on acquisition of an alternate flat allotted in place of an earlier booked flat - Taxation of alternate flat acquired below stamp duty value - HELD THAT: - The alternate flat and the originally booked flat were distinct properties. The assessee did not rebut the finding that substitution of the value of the earlier flat booked in 2012 for determining the s... ... ...

Validity of reassessment notice issued to deceased assessee - Jurisdictional notice to legal representative - Curability of jurisdictional defect HELD THAT: - Where reassessment is sought to be initiated after the assessee's death, section 159 requires the jurisdictional notice to be issued to the legal representative; it does not permit initiation against a deceased person. A notice issued to a dead person is non est and does not confer jurisdiction. The defect concerns the identity a... ... ...

TP Adjustment - Arm's-length pricing of interest on non-convertible debentures - Ad hoc tenure filter in comparable analysis - Interest limitation for debt payable to non-resident associated enterprises - Prematurity of challenge to penalty initiation Arm's-length pricing of interest on non-convertible debentures - Ad hoc tenure filter in comparable analysis - TP adjustment on interest paid on 30-year non-convertible debentures benchmarked under the comparable uncontrolled price metho... ... ...

Transfer-pricing recharacterisation of compulsorily convertible debentures - Character of compulsorily convertible debentures prior to conversion - GAAR procedure for recharacterisation of debt and equity Recharacterisation of unsecured compulsorily convertible debentures issued to an associated enterprise as equity, and determination of the arm's length price of the related interest at nil - HELD THAT: - Compulsorily convertible debentures, though hybrid instruments, continue to retain t... ... ...

Characterisation of compulsorily convertible debentures - Arm's length benchmarking of INR-denominated debt Characterisation of compulsorily convertible debentures - Character of INR-denominated compulsorily convertible debentures for determining the arm's length interest - HELD THAT: - Compulsory conversion at a future date does not by itself render CCDs equity from inception. Until actual conversion into shares, the instruments retain the character of debt; regulatory and accounting... ... ...

Penny-stock gains - bogus LTCG - Unexplained commission expenditure for accommodation entries - Disallowance of expenditure relating to exempt income - Unexplained cash credits - Defective penalty notice Penny-stock long-term capital gains - Test of human probabilities - Accommodation entries through stock-exchange transactions - - genuineness of exempt long-term capital gains claimed from sale of shares - HELD THAT: - The formal execution of share transactions through Demat accounts, recogni... ... ...

Additions u/s 56(2)(vii)(b) - difference vis-à-vis the agreement value of the flat and the value determined by the Stamp Valuation Authority - Applicability of the proviso to section 56(2)(vii)(b) to an under-construction flat allotted before execution and registration of the sale agreement Whether, for applying Section 56(2)(vii)(b), the stamp duty value of a flat is to be determined with reference to the allotment date where consideration was fixed and part payment was made through b... ... ...

Option for concessional tax regime by co-operative society - Deduction for income of credit co-operative society - assessee has inadvertently filed Form No.10-IF Whether an assessee that inadvertently filed Form 10-IF could be compelled to be assessed under the concessional regime under section 115BAD despite claiming deduction under section 80P and declaring in its return that it had not opted for that regime? - HELD THAT: - The return was filed under the old regime, claiming the statutory d... ... ...

Penalty u/s 271D - cash receipt of immovable-property sale consideration - foundational satisfaction in assessment proceedings - Jurisdiction to initiate penalty proceedings - contravention of section 269SS - HELD THAT: - The competence of the Joint Commissioner to impose penalty is distinct from the foundational requirement for valid initiation of penalty proceedings. The requisite satisfaction must originate from, and be discernible in, the assessment proceedings; it cannot be supplied or cure... ... ...

Reassessment notice issued by non-jurisdictional Assessing Officer - Pecuniary jurisdiction under CBDT Instructions - Penalty for under-reporting founded on quashed assessment Reassessment notice issued by non-jurisdictional Assessing Officer - Pecuniary jurisdiction under CBDT Instructions - Validity of reassessment proceedings initiated by an Income-tax Officer despite pecuniary jurisdiction being vested in an Assistant Commissioner or Deputy Commissioner under the applicable CBDT Instructi... ... ...

Estimation of gross profit without rejection of books of account - Additions beyond scope of Limited Scrutiny Estimation of gross profit without rejection of books of account - Estimation of gross profit in the edible-oils business solely on decline in the gross-profit ratio, without rejection of the books of account - HELD THAT: - Before estimating profits, the Assessing Officer must reject the books by recording cogent reasons and identifying material defects. As no defect in the books was ... ... ...

Penalty u/s 271AAB - defective show-cause notice - Non Specification of applicable penalty clause HELD THAT: - As the clauses of section 271AAB(1) operate in different factual circumstances and prescribe different rates of penalty, the assessee must be informed of the particular clause under which penalty is proposed. The reasonable opportunity contemplated by section 274 requires disclosure of the precise statutory basis for the proposed penalty. The notice and the subsequent notices did not... ... ...

India-Ireland tax treaty benefit for income-tax refund interest - Credit of tax deducted at source - Beneficial treaty rate Whether the assessee is eligible for the beneficial rate of tax @10% under Article 11 of the India-Ireland DTAA on interest on Income Tax refund received during the period relevant to the assessment year under appeal? - HELD THAT: - The facts were admittedly identical to those considered for the subsequent assessment year [2023 (10) TMI 699 - ITAT DELHI]. The earlier dec... ... ...

Penalty u/s. 271(1)(c) - disallowance of business interest on secured promissory notes HELD THAT: - The earlier quantum decisions [2017 (11) TMI 327 - GUJARAT HIGH COURT] as following [2017 (11) TMI 63 - GUJARAT HIGH COURT] had held that interest on the secured promissory notes was incurred for business purposes and was not required to be disallowed. Consequently, the basis for the penalty did not survive; the Tribunal had rightly deleted the penalty, initially in view of the debatable nature... ... ...

Deduction of interest on borrowed capital for acquisition of subsidiary shares - Commercial expediency Whether interest on borrowings used to acquire shares in a subsidiary for expansion of the assessee's business was deductible as business expenditure? - HELD THAT: - The question raised in this appeal is no more res-integra in view of the decision of Apex Court in case of Sharp Business System [2025 (12) TMI 1235 - SUPREME COURT] held that purpose for which the advances were made to the ... ... ...