Delhi ITAT ruled that assessments for AYs 2010-11 to 2012-13 under section 153C were invalid as the statutory block period starts from the satisfaction note date, not the original search.
The tribunal held that commission paid to overseas agents was a normal business expense and not taxable in India. Since no TDS was required, disallowance under section 37(1) was unsustainable.
The Tribunal held that while arbitrary disallowances are not sustainable, inadequate substantiation justifies estimation. Disallowances were restricted to 50% to balance fairness and compliance.
The Tribunal struck down reopening where reasons conflicted and rested solely on AIR cash-deposit data. The key takeaway is that reassessment needs a clear, reasoned nexus.
A long-standing lapse in APR filings blocked remittances and triggered litigation. The case shows how systematic reconstruction and regulatory diligence can restore compliance.
The tribunal held that city seizure of gold without foreign markings or import evidence cannot be treated as smuggling. In the absence of proof of foreign origin, confiscation and penalties were set aside.
The issue was whether customs duty could be demanded from a transferee using DFIA licences allegedly obtained by exporter misrepresentation. The Tribunal held that extended limitation cannot apply where no fraud or suppression is alleged against the importer.
Supreme Court upheld the quashing of reassessment where scrutiny queries on deductions were earlier examined. It held that reopening based only on reappraisal of the same material amounts to an impermissible change of opinion.
The Court held that relief cannot be denied under Section 264 merely because a similar issue was earlier pending before the Supreme Court. The revision application was allowed as the issue was already covered by binding High Court rulings.
The ruling set aside a large AMP adjustment after finding that commission paid to distributors could not be recharacterized as marketing expenditure. Consistency with prior years played a decisive role in deleting the adjustment.
