S. 119 : Central Board of Direct Taxes- Circular – Condonation of delay – Filing of return of loss – Genuine hardship – Delay of 5 months in filing return due to bona fide professional advice by Chartered Accountant – Assessee should not suffer grave hardship for a professional’s mistake – Circular No. 9 of 2015 – Delay was condoned – CBDT’s rejection order set aside- Directed that the return filed on 30th March 2019 be treated as filed in time, and permitted assessment to be completed under section 153(1B) of the Act . [S. 72, 80, 119(2)(b), 139(1), 139(3), 153(1B), Art. 226 ]

S. 147 : Reassessment – Information from third-party search – Accommodation entries – Cash credits -Section 153C not triggered, reopening u/s 147 is valid-On merits, addition based mainly on untested third-party statement without cross-examination requires fresh adjudication by CIT(A). [S. 68, 132(4), 133(6), 148, 151, 153C, ITAT Rule, 1963 ,R. 27]

S.115BAA : Tax on income of certain domestic companies – Determination of tax in certain cases – Option exercised under section 115BAA – Rate of tax applicable – Long term capital gains – Company opting for taxation under section 115BAA is liable to pay tax at 22% on total income including long-term capital gains and not at 20% as per section 112. [S. 45 , 112, 143(1), Form 10IC ]

S. 275 : Penalty – Bar of limitation – Recording of satisfaction-Cross objection- CBDT Circular binding on department -Period of limitation is to be reckoned from the date of recording of satisfaction by the AO in the assessment order and not from the date of notice issued by the Joint/Additional CIT. [ S.119, 269SS , 271D, 271E ,271AAA, 275(1)( c) ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Limited Scrutiny – Deemed rental income -Order passed after due enquiry cannot be treated as erroneous and prejudicial to the interests of revenue – PCIT cannot revise assessment to include issues beyond the scope of limited scrutiny (S.143(3), IND AS-115 )

S. 276 : Offences and prosecutions – Removal – Concealment – Transfer –Delivery – Property – Thwart recovery – Offences by companies – Prosecution of directors without impleading company – Not maintainable – Arraignment of company is a condition precedent for prosecuting its directors – Company being the principal offender must first be made an accused – Proceedings against directors alone quashed [S. 278B , 281, CrPC, 1973, S. 482 BNSS, Act , 2023, S. 528 , Negotiable Instruments Act , 1881 , S. 141 ]

S. 92C : Transfer Pricing – Arm’s length price – Avoidance of tax -International transaction – Characterisation of Indian Entity – Limited Risk Distributor -Entrepreneurial Service Provider- Transactional Net Margin Method (TNMM) – Other Method under Rule 10AB – Re-characterisation of Transactions – Royalty Computation – Transfer Pricing Adjustment of ₹444.93 Cr held to be unsustainable .[ R. 10AB ]

S. 276C : Offences and prosecutions – Wilful attempt to evade tax – Failure to pay self-assessment tax along with return – Mere delay in payment of self-assessment tax does not amount to wilful attempt to evade tax – Continuation of prosecution would be abuse of process of law – Complaint quashed and dismissed . [S.139, 140A,143(1), 276C(1), 276(2) ,276B, 278E, 279(1),Art. 227]

S. 254(1) : Appellate Tribunal –Duties – Alleged AI-generated order – Bias apprehension – Transfer of case – Once the ITAT President reassigned the matter to another Bench, writ petition seeking deferment of hearing became infructuous .[Art. 226, 227]