The ruling explains the procedural outcome when a section 263 order is set aside. Original assessment appeals are restored, while appeals from consequential orders are dismissed as infructuous.
The ruling clarifies that TDS must be deducted at the time of credit, even if amounts are booked as provisions. Merely claiming that no payment was made does not excuse non-deduction.
The Tribunal held that where purchases are not disputed and books are not rejected, the entire sale consideration cannot be added as unexplained income. Since the assessee had already offered profits to tax, the addition was deleted.
The tribunal held that reliance on an investigation report cannot override the statutory requirement of section 68. Where the assessee maintained no books, additions based solely on bank credits were invalid.
The ruling clarifies that penalty cannot be levied merely because expenses are partly disallowed on estimation. Absence of under-reporting or misreporting defeats the penalty action.
It was ruled that reassessment proceedings must be initiated only through the faceless mechanism after the CBDT notification under section 151A. The concept of concurrent jurisdiction between JAO and FAO was expressly rejected.
The Tribunal emphasized that the assessee had no individual business in electronic goods. In the absence of incriminating material and with sales recorded by the company, the addition was deleted.
Upholding the appellate order, the Tribunal ruled that section 68 applies only to credits of the relevant year. Opening balances and prior period adjustments cannot be taxed as unexplained income in a subsequent year.
The Tribunal held that interest under Section 28 is part of compensation and not taxable as other income. A reopening based on such misinterpretation was quashed for lack of valid belief.
Setting aside the lower authorities orders, the Tribunal ruled that reliance on amalgamation-related precedents was misplaced. It reaffirmed that goodwill from a slump sale is depreciable when not hit by statutory restrictions.
