Classification of DHA algae oil - Tariff classification under General Rules of Interpretation - Application of General Rules of Interpretation Classification of imported DHA algae oil as an unsaturated fatty acid under CTH 29161590 or as an edible vegetable oil under CTH 1515 - HELD THAT: - Applying GRI 1, the Tribunal held that classification must be determined from the tariff headings and relevant Chapter Notes. The imported product was edible algae oil comprising a mixture of saturated and... ... ...

Beneficial owner - liability for customs dues - Transaction value-rejection based solely on NIDB data - Past import consignments-valuation enhancement and confiscation - Penalty for misdeclaration of imported quantity Beneficial owner-liability for customs dues - Liability of authorised signatories holding power of attorney for a deceased sole proprietor in respect of imports effected during the proprietor's lifetime - HELD THAT: - The definition of importer includes a beneficial owner ex... ... ...

Reverse burden of proof for notified gold - Reasonable belief for seizure of gold Sustainability of confiscation of gold seized from a carrier holding a delivery challan and supported by licit-procurement documents, on the allegation of smuggling - HELD THAT: - Though gold is a notified item, the carrier discharged the burden under Section 123 by producing the delivery challan for the gold. The onus consequently shifted to Revenue to establish that the gold was of foreign origin and smuggled,... ... ...

Re-import exemption for Indian-registered personal vehicles - Bill of Entry - impossibility of electronic filing Re-import exemption for Indian-registered personal vehicles - Section 51 export clearance for commercial goods - Entitlement of an Indian-registered personal vehicle, lawfully taken abroad for travel, to re-enter India without a Section 51 export clearance - HELD THAT: - The vehicle had lawfully exited as a private conveyance carrying passenger luggage under Chapter VI of the Custo... ... ...

Agreement-date stamp-duty valuation for redeveloped immovable property - income from other sources under Section 56(2)(vii)(b). Availability of agreement-date stamp-duty valuation for a new flat in a redeveloped building on the basis of an earlier booking with the erstwhile developer - HELD THAT: - The benefit under the provisos to section 56(2)(vii)(b) is available only where an agreement preceding registration fixes the consideration for the transfer ultimately registered and the stipulated... ... ...

Principles of natural justice - ex parte income-tax assessment - Penalty for non-compliance with statutory notices - successive notices on identical issues Principles of natural justice - ex parte income-tax assessment - Fresh adjudication of the ex parte assessment involving alleged grey-market purchases and disallowance of claimed deductions. - HELD THAT: - Having regard to the parties' submissions, the Tribunal considered that restoration to the Assessing Officer for a fresh decision w... ... ...

Interest on refinanced borrowings for house property - Capitalisation of interest on investment borrowings - Disallowance u/s 14A in absence of exempt income Interest on refinanced borrowings for house property - Nexus of borrowing with construction of house property - Deduction of interest on refinanced borrowings against income from house property where the original borrowing was asserted to have been utilised for construction of the let-out property - HELD THAT: - Interest attributable to ... ... ...

Jurisdiction of Assessment Unit to impose penalty under section 271D - Operationalisation of Penalty Unit under the Faceless Penalty Scheme Validity of penalty for alleged acceptance of cash contributions from members, imposed by the Assessment Unit after the Penalty Unit had become operational under the Faceless Penalty Scheme - HELD THAT: - The SOP governing the Faceless Penalty Scheme provided for assignment of penalties under Chapter XXI to the Penalty Unit. The Tribunal held that, once t... ... ...

Penalty for concealment or inaccurate particulars - specific charge in notice - Search penalty on undisclosed income - specific statutory limb in notice - Disallowance of salary expenditure on allegedly non-genuine services Disallowance of salary expenditure on allegedly non-genuine services - HELD THAT: - The Tribunal regarded the controversy as fact-based and observed that fuller fact-finding would ordinarily be required. Considering the totality of the circumstances and the assessee's ... ... ...

Unexplained money - uncorroborated election -related cash entries in seized loose sheet - Year of assessability of election-related cash entries Unexplained money - uncorroborated seized loose-sheet entries - Addition as unexplained money for alleged election-related cash receipts, based on a seized loose sheet and contradictory statements without independent corroboration - HELD THAT: - A seized loose sheet, by itself, cannot fasten liability unless its entries are corroborated by independen... ... ...

Reassessment jurisdiction - reason to believe distinguished from suspicion Validity of reassessment notice where the recorded reasons merely sought verification of claims and supporting particulars without recording a belief that income had escaped assessment - HELD THAT: - The statutory condition of "reason to believe" requires a bona fide belief founded on relevant material and cannot be substituted by a desire to verify claims or by mere suspicion. The recorded reasons only indicated that ... ... ...

Unexplained investments - aggregate bank credits - Concealment penalty - deletion of quantum addition Addition u/s 69 for aggregate credits in savings-bank accounts despite corresponding withdrawals - HELD THAT: - Section 69 applies to investments not recorded in the books. The Assessing Officer neither identified any asset or investment held outside the books nor accounted for the corresponding debit entries and withdrawals while aggregating all bank credits. The cash-transaction details fur... ... ...

Genuineness of BSE futures and options trades - Unexplained cash credit and consequential commission expenditure Addition of disclosed profits from BSE futures and options trades as unexplained cash credit, and the consequential addition of alleged commission expenditure for obtaining accommodation entries - HELD THAT: - The Tribunal found that the profits from the BSE futures and options trades had been disclosed and offered to tax. The contract notes, tax records, bank statement, annual rep... ... ...

Foreign salary received in NRE account by non-resident - Consideration of passport and bank-account evidence - Taxability of salary earned abroad by a non-resident and received in USD in an NRE account, where foreign tax returns, tax residency certificate and proof of foreign tax payment were not furnished HELD THAT: - The Tribunal held that non-furnishing of foreign tax returns, a tax residency certificate and proof of foreign tax payment could not, by itself, justify rejection of the assess... ... ...

Reassessment - investigation material linking loan creditors to accommodation-entry providers - Unexplained cash credit - alleged accommodation loans repaid through banking channels Reassessment - investigation material linking loan creditors to accommodation-entry providers - Validity of reassessment initiated on investigation material linking the assessee's loan creditors with accommodation-entry providers - HELD THAT: - The investigation report, founded on admissions concerning managem... ... ...

Unexplained investment - cash deposits in jointly held NRO account Addition as unexplained income in respect of cash deposits in a jointly held NRO bank account - HELD THAT: - The cash deposits were accepted as arising from accumulated capital savings, having regard to the assessee's foreign earnings, bank withdrawals from the same account, and supporting passport and bank records. Further, the entire deposit could not be attributed solely to the assessee when the NRO account was jointly ... ... ...

Unexplained jewellery - satisfactory explanation of source - CBDT Instruction No. 1916-family jewellery Addition for jewellery found in the assessee's locker as unexplained income despite old valuation reports and the explanation of family ownership - HELD THAT: - The Government-approved valuation reports established that the jewellery was old and belonged to the assessee and family members. CBDT Instruction No. 1916 was a guiding factor in considering jewellery attributable to family mem... ... ...

Capital asset - right to specific performance - Section 50C-transfer of contractual right in land Applicability of section 50C to relinquishment of an unregistered contractual right to obtain specific performance of an agreement for sale of land - HELD THAT: - The assessee's sole remedy upon the vendor's default was to institute a suit for specific performance; no sale deed was registered in its favour and the vendor remained owner of the property. The right relinquished was therefore... ... ...

Reassessment sanction - application of mind to income escaping assessment Validity of sanction for reassessment based on alleged cash transactions with a builder, where the quantum of income escaping assessment approved differed from that determined in the order under section 148A(d) - HELD THAT: - The approval was obtained on the basis of a higher alleged quantum of escaped income, whereas the order under section 148A(d) proceeded on a reduced quantum. This demonstrated that the Assessing Of... ... ...

Validity of reassessment - addition unconnected with recorded reasons Sustainability of an addition for unexplained bank credits where no addition was made on the reason recorded for reopening - HELD THAT: - The reassessment was initiated on the basis of information regarding receipt of interest. Since no addition was made on that recorded reason and the addition concerned alleged unexplained credits in the bank account, the reassessment was unsustainable. The Tribunal applied the settled pri... ... ...