Unexplained investment - verification of source of capital - Bank-credit reconciliation - Deductibility of GST late fee Unexplained investment - source of capital introduction - Bank-credit reconciliation - Addition for capital introduced from personal funds and alleged undisclosed business income arising from unreconciled bank credits - HELD THAT: - Section 69 applies to an investment not recorded in the books where its nature and source are unexplained or the explanation is unsatisfactory. ... ... ...

Limitation for assessment of an other person u/s 153C - Maintainability of writ petition despite alternative statutory remedy Limitation for assessment of an other person u/s 153C - Ten-assessment-year block period - HELD THAT: - For proceedings concerning an other person, the date of receipt of seized material, documents or digital data by the jurisdictional Assessing Officer is treated as the date of search. Though the actual date of receipt was unavailable, even on treating the searched pe... ... ...

Sustainability of tax-evasion prosecution after setting aside of assessment order HELD THAT: - The assessment order on the basis of which the complaint had been instituted was set aside for fresh assessment. Since the prosecution rested on that assessment, it lacked a subsisting foundation and could not be sustained. [Paras 12, 13] The complaint, convictions and sentences were set aside, and the petitioners were acquitted. Final Conclusion: The revision petitions were allowed as the set... ... ...

Condonation of delay in filing first income-tax appeal - Sufficient cause-diligence and bona fides - Substantial question of law-concurrent factual findings - distinction between a short delay and an inordinate delay Sufficiency of counsel's personal circumstances and the assessee's own inaction as cause for condoning the delay in filing the first appeal against the best-judgment assessment - HELD THAT: - The power to admit a delayed appeal is conditional upon sufficient cause. Though... ... ...

Opportunity of personal hearing before reassessment notice - Principles of natural justice in reassessment proceedings - Requirement of a personal hearing before determining that it is a fit case to issue notice for reassessment - HELD THAT: - The statutory requirement to provide an opportunity of being heard before passing the order is mandatory. Mere issuance of a show-cause notice and consideration of the assessee's written reply do not fulfil the requirement of affording a personal he... ... ...

Assessment u/s 153A/153C v/s 147/148/148A - Reassessment jurisdiction in pre-1 April 2021 search cases - Exclusive recourse to search assessment u/ss 153A/153C HELD THAT: - Where the search was conducted before 1 April 2021, the statutory scheme required recourse to sections 153A/153C. Material found during such search could not be made the basis for assuming reassessment jurisdiction under sections 147/148 after that date; reassessment under those provisions remained available only on materi... ... ...

Charitable registration of a real estate development society u/s 12AB - Objects for benefit of public at large - registration denied as certain objects concern the interests and welfare of its members HELD THAT: - On examining the trust's objects as a whole, the Court found that none related to religious activities and that the objects relied upon by the Revenue, read with the principal objects, were for the benefit of the public at large. The premise that the trust existed merely to prot... ... ...

Scope of rectification under section 254(2) - Rectification jurisdiction of the Tribunal - Review on merits under guise of rectification - Validity of rejection of the rectification application on new factual considerations not forming part of the application or the original appellate order - HELD THAT: - The power under section 254(2) is confined to correcting a mistake apparent from the record and does not authorise reconsideration of the matter on merits or review of the earlier order. The... ... ...

Reassessment after expiry of four years - Full and true disclosure of material facts - Change of opinion after scrutiny assessment Validity of reopening a completed scrutiny assessment for unabsorbed depreciation and delayed deposit of TDS on commission after expiry of four years - HELD THAT: - The assessee had fully disclosed the relevant particulars and supporting material during the original scrutiny assessment, including the position concerning unabsorbed depreciation, which had not been ... ... ...

Revision of assessment as erroneous and prejudicial - revision of the assessment for failure to make additions concerning unutilized CENVAT credit, excise-duty refund and additional depreciation on windmills HELD THAT: - The Court found no legal infirmity in the Tribunal's conclusion that the Assessing Officer had considered and accepted the assessee's explanations and written submissions on all three matters. The absence of reasons in the assessment order for accepting those explana... ... ...

Acceptance of the internal Transactional Net Margin Method - transfer-pricing adjustment in violation of section 92 to 92C of Income Tax Act, 1961 and rule 10B of Income Tax Rules, 1962 HELD THAT:- Concededly, the said issue is covered by the decision of this Court in [2026 (9) TMI 1469 - KARNATAKA HIGH COURT] which arose from the impugned order passed by the learned ITAT in [2025 (12) TMI 1914 - ITAT BANGALORE] for AY 2014-15.... ... ...

Personal hearing through video conferencing - Faceless assessment procedure - Validity of a faceless assessment made without granting the assessee's requested and acknowledged personal hearing through video conferencing HELD THAT: - The requested personal hearing through video conferencing had been acknowledged, yet the assessment was completed and consequential demand raised without affording that hearing. Such denial of a requested personal hearing violates the requirement under section... ... ...

Unexplained cash credit u/s 68 - accounted sales receipts - Consequential alleged commission expenditure - Addition as unexplained cash credit in respect of sales receipts recorded in the books and accepted as income, together with the consequential addition for alleged commission expenditure HELD THAT: - The Tribunal's factual finding that the impugned receipts formed part of sales duly recorded in the books, the corresponding sales details and profit element having been furnished and ac... ... ...

Net-profit estimation in steel-trading business after rejection of books of account - Substantial question of law in factual profit estimation HELD THAT: - The Court noted that the identical issue for an earlier assessment year had already been rejected in the assessee's own case [2023 (1) TMI 326 - GUJARAT HIGH COURT]. The prior decision held that, although rejection of the books was sustained, the Assessing Officer had not furnished internal or external comparables to support the estima... ... ...

Time-bound disposal of income-tax appeals - Expeditious disposal of first appeals - Genuine hardship from prolonged pendency - Expeditious disposal of a pending income-tax first appeal under section 250(6A), notwithstanding the expression "where it is possible" - HELD THAT: - Section 250(6A) manifests the legislative intent that appeals should ordinarily be heard and decided within one year from the end of the relevant financial year. The expression "where it is possible" cannot be invoked to pe... ... ...

Jurisdictional sanction for reassessment after three years - Prospective operation of proviso to Section 151 - Reassessment on third-party survey material without live link Competent authority for reassessment sanction after three years - Prospective operation of proviso to Section 151 - Competence of the Principal Commissioner to sanction the reassessment notice for Assessment Year 2018-19 after expiry of three years, having regard to the time-exclusion provisos to section 149 and the subseq... ... ...

Refund of provisionally reversed input tax credit - Self-assessed GST liability - Retention of GST during pending investigation Entitlement to refund of input tax credit provisionally reversed in Table 4(B)(2) of GSTR-3B for August 2018 in connection with an alleged stock shortage, where the Department treated the reversal as self-assessed tax and relied on pendency of investigation - HELD THAT: - The statutory character of an amount disclosed in a return depends on the nature of the entry, t... ... ...

GST on the rental income which they are receiving from the Department of Home in respect of the hotel accommodation of petitioners hired by the Department of Home HELD THAT:- The petition was disposed of on the same terms as the earlier decision Haji Khazir Mohd. Dar & Ors. v. U.T. of J&K & Ors [2025 (7) TMI 2088 - JAMMU & KASHMIR HIGH COURT] concerning GST on rent received for hotel accommodation hired by the Department of Home.... ... ...

Proceedings against deceased taxable person - Natural justice in recovery from deceased's estate - Notice to legal representative for recovery from estate HELD THAT: - Though tax, interest or penalty due from a deceased person may be recovered from the estate in the hands of the legal representative, a valid order requires that the person inheriting the estate be arrayed and given an effective opportunity of hearing. The legal representative's appearance to object in proceedings insti... ... ...

Amnesty settlement for waiver of interest and penalty - requirement for amnesty u/s 128A - Timely credit in Electronic Cash Ledger and delayed appropriation to Electronic Liability Register Entitlement to the amnesty benefit where the tax was credited to the Electronic Cash Ledger within the prescribed period but FORM GST DRC-03A for appropriation to the Electronic Liability Register was furnished later - HELD THAT: - Although the prescribed mode under Rule 164(2) required appropriation throu... ... ...