NCLT Kochi held that proposed reduction of paid-up capital is justified on commercial grounds, duly approved by the shareholders, and does not adversely affect any creditors, employees, or other stakeholders. The reduction is proportionate and lawful u/s. 66 of the Companies Act, 2013.
The Tribunal held that capital introduced by a partner could not be taxed as unexplained when authorities failed to verify the assessee’s evidence. Both the AO and CIT(A) ignored cash flow records and bank statements without conducting inquiry. The addition was deleted for violating principles of natural justice.
ITAT Delhi held that the assessee is eligible for entire credit of foreign taxes, even if the taxability was nil consequent to the deduction on account of business losses or section 10A exemption. Accordingly, appeal is allowed.
The Tribunal ruled that authorities erred by ignoring the sale deed, receipt, and bank statements solely due to a technical lapse in return filing. Since the documents clearly established the source of cash, the addition could not survive. The order directed deletion of the section 69A addition.
The ruling explains strict compliance requirements for specified domestic transactions, including maintaining detailed documentation for eight years. It highlights that failure to maintain, report, or furnish accurate information attracts penalties of up to 2% of transaction value.
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ITAT held that the AO’s verification of seized material, statements, and bank records constituted proper enquiry. Key takeaway: Section 263 cannot be invoked merely because the PCIT prefers a different view.
