Depreciation on goodwill arising from amalgamation remained allowable because the claim had consistently been accepted in the taxpayer's earlier assessment years and no material factual change was shown. The Revenue's reliance on a decision involving artificial and colourable creation of goodwill was distinguishable, with no comparable finding here. Deduction of employee stock option reimbursement expenditure was also sustained, as an earlier Tribunal ruling in the taxpayer's own matter had addressed objections on business purpose, capital character and tax deduction at source, and no distinguishing facts were produced. The Revenue's appeal was dismissed.

Delay and laches, acquiescence, estoppel, and the clean hands doctrine arise in oppression and mismanagement proceedings, alongside the Tribunal's jurisdiction to examine allegations of fraud and forgery. The issues also include the standard of preponderance of probabilities, perversity of findings in an appeal under Section 10F, admission of additional appellate evidence under Order XLI Rule 27 CPC, and appointment of a special auditor. The Supreme Court declined to interfere with the High Court's decision and dismissed the special leave petition.

Reassessment jurisdiction was sustained because reasons to believe were recorded and the prescribed statutory procedure was followed. However, additions for alleged unexplained income and expenditure drawn from seized ledger entries could not be made again in another assessee's hands where the ledger owner had accepted the entire recorded amounts and those amounts had already been substantively assessed and confirmed in that person's hands. Corresponding protective additions in the company's hands also could not survive after the substantive additions in the individual's hands were deleted on merits. The challenges to reassessment failed, while the duplicate substantive and related protective additions were deleted.

Anonymous donations received by a trust registered under section 12A and claiming exemption under section 11 are specifically governed by section 115BBC. As section 115BBC does not require records establishing anonymous donors' identity, name or address, absence of those particulars cannot justify treating such donations as unexplained cash credits under section 68. The donations are taxable at the prescribed rate under section 115BBC rather than being added as unexplained cash credits.

Transfer-pricing treatment of advertisement, marketing and promotion expenditure requires evidence of an arrangement obligating expenditure for an associated enterprise's brand promotion; disclosed marketing reimbursements alone do not create a separate international transaction. Accordingly, AMP adjustments based on the Bright Line Test or intensity-based TNMM were deleted. Comparable selection must reflect functional similarity, with service providers excluded from a predominantly trading-based networking segment and manufacturing comparables adjusted or verified where required. Royalty integral to manufacturing may be aggregated under TNMM where reliable CUP comparables are unavailable, avoiding double adjustment. For low-risk equipment .....

Profit attribution to an Indian dependent agency permanent establishment (DAPE) may extend beyond arm's length remuneration where the transfer-pricing analysis fails to capture all functions performed and risks assumed. A Mutual Agreement Procedure resolution binds only the assessment years expressly covered, though its methodology may be applied to other years if facts and functions remain unchanged. Where the DAPE undertakes additional activities beyond those disclosed in the transfer-pricing study, a separate attribution is warranted; profit was restricted to 12% of advertisement revenue rather than the estimated rate. Tax credit for taxes paid by the DAPE requires verification and quantification. Interest is consequential, while a challenge to penalty initiation at assessment stage is premature.

Revision under section 263 cannot rest merely on a view that the Assessing Officer should have conducted a deeper inquiry into share capital received from an existing non-resident shareholder. Where the assessment record shows detailed queries and supporting material on the investor's identity, creditworthiness, remittance and transaction, an assessment order need not expressly record every inquiry to establish application of mind. Revisionary jurisdiction does not permit re-examination where the Assessing Officer adopted a permissible view after inquiry. The revisionary authority must undertake at least minimal independent inquiry and clearly establish that the assessment is both erroneous and prejudicial to Revenue; it cannot remand genuineness for fresh determination.

Reassessment jurisdiction cannot rest on unverified, factually incorrect information or disregard the taxpayer's specific explanation. Aggregating distinct information-portal entries as escaped income, when only one entry was relevant, showed non-application of mind; the eventual addition also did not match the aggregated amount or one entry. Reopening on that premise was invalid because the Assessing Officer failed to verify the information before assuming jurisdiction and did not address the objection. The reassessment order was quashed and the appeal allowed.

Related-party advances by a charitable society did not warrant denial of exemption where the construction advance arose in ordinary construction activity and no evidence showed personal benefit to specified persons, overpricing, or non-arm's-length terms. Advances to registered charitable institutions were not shown to divert funds for private benefit. Section 40A(2)(a) could not apply because the disputed interest was paid to unrelated banks, making the related disallowance and notional-interest addition unsustainable. Donations to registered charitable entities undertaking charitable activities were permissible application of income, and scholarships were claimed as charitable application. The disallowances were deleted and exemption under sections 11 and 12 was extended.

Statutory sanction by the authority specified under section 151(ii) is a jurisdictional precondition for reassessment notices issued beyond three years where alleged escaped income exceeds the prescribed threshold. For AY 2016-17, approval from the Principal Commissioner did not satisfy the requirement for approval from the Principal Chief Commissioner. The defect invalidated the assumption of reassessment jurisdiction, resulting in the reassessment order being quashed.

Penalty for failure to obtain a tax audit applies where existing books of account are not audited; it does not apply merely because books were not maintained or produced. Failure to maintain books and failure to obtain an audit are distinct defaults with separate consequences. Where turnover and profit are estimated from bank deposits because no books are available, estimated turnover or bank statements cannot substitute for books of account capable of audit. On these facts, the penalty for non-audit was unsustainable and was deleted.

Transfer pricing treatment of idle capacity, comparables, segmental results and customs duty requires fresh examination using cost-audit data, customer agreements, available comparability material and supporting evidence. Provision write-backs and miscellaneous receipts may remain operating items where the original provisions were operating expenses, subject to verification; where business support income is non-operating, corresponding costs must also be excluded from margins. Exchange loss on borrowings for domestic capital assets after the asset is put to use is revenue in character, as section 43A applies to assets acquired outside India. Software applications qualify for computer-rate depreciation, and secondment reimbursements of actual salary costs are not fees for technical services where employees work under the recipient's control and salary tax is deducted.

Cash-credit additions for unexplained deposits require a comprehensive examination of the taxpayer's cash-collection business model, debtor-recovery cycle, and supporting records, including debtor ledgers, subscription records, cash books and bank statements. Where such evidence has not been fully considered, the addition requires fresh adjudication after reasonable hearing, without deciding the merits or the validity of book rejection. Interest for advance-tax default is consequential to the assessment. Penalty proceedings for unexplained or under-reported income remain separate from quantum proceedings, making a challenge to their initiation premature.

Acquisition-related legal and professional expenditure for extending an undertaking or establishing a new unit falls under the specific preliminary-expense amortisation provision rather than the residuary deduction provision; the Assessing Officer's treatment was sustained. Repairs to leased premises remained partly revenue in nature, while depreciation on business-use premises and office equipment was allowed. Trademark renewal and protection expenditure requires verification of whether it merely maintains existing intellectual-property rights and was remanded. Interest disallowance relating to exempt income was restricted where own funds exceeded investments, but expenditure computed under Rule 8D was required to be added back in book-pro.....

Unauthorised use of another Customs Broker's credentials for clearance-related activities contravenes Customs Broker licensing obligations, even where the licence-holder consents or has a mutual understanding with the acting broker. The broker actually handling the transaction must obtain the importer's authorisation in its own name, advise on import restrictions, report non-compliance, and maintain and produce transaction records. Where prohibited goods are involved, concealing the identity of the broker undertaking clearance is a substantive regulatory breach. Revocation of the licence, forfeiture of security deposit, and penalty may be proportionate despite no prior violations or an earlier suspension, because suspension does not replace final consequences for established contraventions.

Declared export transaction value cannot be rejected merely on parallel or pro-forma invoices unrelated to the disputed consignment. Rejection requires contemporaneous prices of identical goods, market inquiry, or cogent evidence of manipulation such as financial flow-back from the foreign buyer. As no such evidence established overvaluation, the declared value was accepted and redemption fine was set aside because the goods had already been exported. Penalties on both a partnership firm and its partner for the same infraction amount to impermissible double punishment, since the firm is not distinct from its partners for this purpose. The original penalty on the firm was retained for past parallel invoices, while enhanced penalties and all partner penalties were removed.

Rejection of declared FOB value and denial of drawback for readymade garments exported under 63 shipping bills were unsustainable because the proceedings relied exclusively on an investigation into separate March 2017 exports. Export remittances matching the declared FOB value had been received, while departmental costing material did not establish overvaluation. No independent enquiry addressed the 63 shipping bills. Consequently, the demand, FOB-value rejection and penalties were set aside, and the appeal succeeded with consequential relief.

Supplementary show cause notices must remain within the original notice's scope, comply with limitation, and allow an adequate opportunity to respond; fresh grounds introduced through late corrigenda breach natural justice. Preferential customs exemption based on certificates of origin cannot be denied without reliable evidence of inauthenticity, particularly where certificates were verified at import and remain uncancelled. Reclassification of decorative stainless-steel wall panels and profiles requires Revenue to discharge its evidentiary burden through representative samples, technical evidence, and legally admissible statements. Transaction value cannot be rejected or enhanced without compliance with valuation procedures and evidence of additional consideration. Where misdeclaration and undervaluation fail, suppression with intent to evade duty and related penalties do not survive.

Conditional votes on a revival scheme cannot be treated as unqualified statutory assent where attached modifications materially affect allottees' contractual and financial rights. Sanction requires the statutory majority to approve the arrangement ultimately placed before the Court, after the legal effect of conditions, informed stakeholder decision-making, fairness to the affected class, adequate disclosure and individual objections have been assessed. Commercial wisdom of the majority applies only once these statutory safeguards are met. The sanction of the revival scheme was set aside and remanded for fresh consideration, including fresh meetings where required.

Government grants held by a nodal agency for State infrastructure schemes, remaining under State control and returnable on demand, do not accrue as the agency's taxable income. Interest on compulsory deposits of surplus grant funds likewise retains the grant's character where the agency cannot use it beneficially or earn profit from it. Form 26AS entries do not establish unrecorded income where interest is already recorded or receipts reimburse expenditure incurred for another party. Business expenditure incurred wholly and exclusively for road and bridge projects remains allowable under Section 37(1); absence of corresponding booked project income alone does not justify disallowance.