Section 80P(2)(a)(i) permits deduction for profits attributable to providing credit facilities to members. The exclusion under section 80P(4) applies to a co-operative bank operating as a banking institution with an RBI licence, not to a credit co-operative society lending only to members without such licence. Member-credit income of such a society therefore remains eligible for deduction. For first appeals, sections 249(2) and 249(3) allow delayed filing on sufficient cause; a bona fide belief that appeal was unnecessary while demand remained in abeyance may support condonation where the delay confers no advantage.

Where seized documents belong to a person other than the searched person, the first proviso to Section 153C(1) treats the date on which that person's Assessing Officer records satisfaction after receiving the material as the date of search. Assessment years within the six preceding years, including Assessment Year 2021-22 where satisfaction was recorded on 11 May 2022, must be assessed through Section 153C proceedings. Resort to regular assessment under Section 143(3) for such a covered year is jurisdictionally invalid.

Jurisdictional notice issued by an officer lacking pecuniary jurisdiction under CBDT Instruction No. 1/2011 constituted an inherent illegality. For non-corporate assessees with returned income up to the prescribed threshold, jurisdiction lay with an Income-tax Officer. Territorial-jurisdiction objections under section 124(3) did not preclude a challenge to pecuniary jurisdiction, and section 292BB could not cure the defect. The notice and consequential assessment were void ab initio.

Section 69 applies only where an investment remains unexplained. In a jointly acquired residential property, housing-loan proceeds, mutual-fund redemptions, provident-fund withdrawals and matching bank-account payments of the assessee and spouse established both the source and application of the purchase consideration. Materials already on record supported the explanation; failure to respond to a later show-cause notice did not displace that evidence. The investment was treated as fully explained, and the Section 69 addition was deleted.

Unexplained loan-credit additions require proof of the creditor's identity, creditworthiness and the genuineness of the transaction. Lender confirmations, income-tax returns, source details and banking records may establish these elements where they remain unrebutted and no contrary material or further lender inquiry exists. Continued non-repayment of interest-free loans may be explained by the borrower's health and financial difficulties. Restoration to lower authorities is unnecessary where the existing record contains all material needed to decide the addition and no further factual inquiry or evidence is required.

Section 43CA requires stamp-duty value to be treated as the full value of consideration where it exceeds the stated sale consideration. Where the agreement date differs from the registration date, section 43CA(3) applies the stamp-duty value prevailing on the agreement date, provided that section 43CA(4) is satisfied through whole or part receipt of consideration by non-cash means on or before that date. Receipt of part consideration through RTGS before execution of the agreement, coupled with unchanged sale consideration and transaction terms until registration, supports adoption of the agreement-date stamp-duty value.

Tax deducted at source on interest payments prevents expense disallowance for non-deduction, even where the deduction is alleged to be at a lower applicable rate. Section 40(a)(i) addresses failure to deduct tax or failure to deposit tax after deduction; it does not apply solely to a shortfall in the rate deducted. Alleged short deduction is to be addressed through proceedings under section 201 rather than by directing disallowance under section 40(a)(i). Revision under section 263 cannot rest on an assertion that an assessment is erroneous and prejudicial to revenue merely because tax was deducted at a lower rate.

Supervisory permanent establishment under India-Japan DTAA - Taxability of offshore supplies completed outside India - Seconded-employee salary reimbursement - No estoppel against statute Supervisory permanent establishment - Project-wise duration test - Existence of a Supervisory Permanent Establishment in respect of supervisory services rendered to Indian customers, including an automobile dealer - HELD THAT: - Article 5(4) requires cumulatively that supervisory activities in India exceed s... ... ...

Unexplained election expenditure - corroboration of seized notebook entries - Statutory presumption regarding seized documents - Year of assessability of election-campaign expenditure Unexplained election expenditure - corroboration of seized notebook entries - Statutory presumption regarding seized documents - Attribution to the assessee of alleged election expenditure reflected in a notebook seized from commission-agent business premises - HELD THAT: - The notebook neither named nor otherwi... ... ...

Application of charitable income for scholarships to Indian students pursuing overseas education - Scope of inquiry at registration of charitable institutions Application of charitable income outside India - Scholarships to Indian students for overseas education - Scholarships disbursed in India in Indian currency to Indian students for higher education abroad as application of income outside India and as activity beyond the trust's educational objects - HELD THAT: - The scholarship amoun... ... ...

Rectification of final assessment order for non-implementation of DRP directions - Permanent establishment of non-resident through Indian subsidiary - Reimbursement of costs as fees for included services under India-USA DTAA Rectification of final assessment order for non-implementation of DRP directions - Validity of rectification of the final assessment order which inadvertently omitted to give effect to the DRP's directions - HELD THAT: - The directions of the DRP are binding and the f... ... ...

Subsequent statutory amendment to the proviso to Section 147A - Validity of the Tribunal's order for assessment year 2016-2017 in the light of the subsequent amendment to the proviso to Section 147A HELD THAT: - The Tribunal's order preceded the amendment, which had not even been placed before Parliament when the Tribunal decided the matter. The Tribunal had applied the legal position then governed by jurisdictional High Court decisions; its finding could therefore not be held contrar... ... ...

Section 14A and Rule 8D disallowance where exempt-income investments are from own funds - HELD THAT: - Following the earlier decision on identical questions [2026 (6) TMI 611 - MADRAS HIGH COURT] the Court held that, where the financials established availability of sufficient surplus funds and the investments were not made from interest-bearing borrowings, no expenditure could be disallowed or estimated on a proportionate basis for earning the exempt income. [Paras 3, 4] The questions were... ... ...

Limitation for correction of TDS statements - Employer's default in remitting TDS - Employee's protection from employer's TDS default Limitation for correction of TDS statements - Non-filing of TDS returns - Applicability of the limitation for amendment of TDS statements where the employer had not filed an original statement or return - HELD THAT: - The prescribed time limit for amendment or correction of a TDS statement could not justify refusal to file an original TDS statement ... ... ...

Recovery of disputed tax demand pending first appeal - Reasoned departure from CBDT 20% recovery norm - Refund adjustment exceeding CBDT 20% recovery norm HELD THAT: - The CBDT instructions prescribe recovery of 20% of the disputed demand as the ordinary condition for stay during the first appeal. Departure is permissible only for recorded reasons, including lack of prima facie sustainability of the assessee's case or exceptional circumstances. As the stay order itself recorded recovery e... ... ...

Sanction by specified authority for reassessment beyond three years - Validity of reassessment proceedings for A.Y. 2017-18 where sanction, after expiry of three years from the end of the assessment year, was granted by the Principal Commissioner instead of the authority specified for such cases HELD THAT: - Under the amended reassessment regime, where more than three years have elapsed from the end of the relevant assessment year, sanction must be granted by the higher specified authority un... ... ...

Computation of limitation where the prescribed last day is a holiday - Mandatory Dispute Resolution Panel procedure Timeliness of the assessee's objection to the Dispute Resolution Panel where the thirtieth day fell on a Sunday, and the validity of final assessment made without the Panel's directions - HELD THAT: - Where the last day of the statutory period for filing objections fell on a Sunday, the objection filed on the next working day was deemed to have been filed within time und... ... ...

Principles of natural justice in reassessment proceedings - Non Adequate opportunity to respond to a post-notice information request Validity of the order under section 148A(3) and the consequential notice under section 148 where the petitioner was not afforded adequate opportunity to respond to the information sought by the Revenue - HELD THAT: - The Court found that the petitioner had not been given an adequate opportunity to respond to the Revenue's request for information. The resulti... ... ...

Jurisdictional facts for reassessment following search - Interim stay of reassessment proceedings concerning cash disclosed by the petitioner as cash sales HELD THAT: - Although, for the relevant assessment year, a notice under the reassessment provision could be issued following a search without recourse to the earlier search-assessment procedure or the preliminary procedure otherwise applicable, the Court noted that the seized cash had been disclosed by the petitioner in its return and its ... ... ...

Review jurisdiction - discovery of new evidence and due diligence Review of the dismissal of the assessee's appeal concerning an unexplained bank credit on the basis of purportedly new sale deeds and a Tribunal order - HELD THAT: - Discovery of new evidence can support review only where the applicant establishes that, despite due diligence, it was not within knowledge or could not have been produced earlier. In Malleeswari [2025 (9) TMI 1806 - SUPREME COURT] the Supreme Court summarize... ... ...