The case examined whether share premium could be taxed without proof of unaccounted funds. The Tribunal held that Section 56(2)(viib) cannot be invoked without establishing such inflow, leading to deletion of the addition.
The court ruled that objections to territorial jurisdiction must be raised in the written statement. Late objections cannot be entertained and are deemed waived.
The court held that issues conclusively decided by multiple courts cannot be reopened by subordinate authorities. It declared such attempts as abuse of process and upheld finality of judgments.
The case examined whether bank deposits could be taxed as unexplained credits. The Tribunal held that Section 68 applies only to entries in books of account, leading to deletion of the addition.
Tribunal held that technical handling income is covered under Article 8 of India–France DTAA. It ruled that such income arises from operation of aircraft in international traffic and is not taxable in India.
The Tribunal held that protective additions cannot be sustained without establishing the assessee as the actual beneficiary of cash credits. It upheld deletion where ownership was not proven.
The Court held that cancellation for non-filing of returns can be reconsidered if the taxpayer files pending returns and clears dues. Authorities must examine such applications under Rule 22.
The Court held that blocking ITC without available credit in the ledger is beyond statutory powers. It ruled that negative blocking is impermissible and directed restoration of the credit.
The Supreme Court held that ambiguity in exemption notifications cannot benefit taxpayers. It ruled that such ambiguity must be resolved in favour of the Revenue, reinforcing strict interpretation principles.
The Tribunal found that the relationship between parties was a commercial arrangement for smooth supply of goods. It held that such arrangements do not amount to benami transactions. commercial dealings must be distinguished from benami arrangements.
