S. 143(3): Assessment-Appeal was filed against assessment order within extended limitation period granted by Supreme Court owing to pandemic-Writ petition dismissed-The assessee was relegated to statutory remedy of appeals before the Commissioner (Appeals) under section 246A and the Tribunal under section 253.[S. 246A, 253, Art. 226]

S. 143(3): Assessment-Validity-Unable to access Department’s portal-Order quashed-Matter remanded for reconsideration subject to payment of costs of Rs.10000 by assessee to the Adyar Cancer Institute, Chennai. [S. 142(1), Art. 226]

S. 143(3): Assessment-Principle of natural justice-Allegation that assessee had not been heard not proved-Writ petition dismissed-Given liberty to file statutory appeal.[S. 142(1), 147, 148, 246A, Art. 226]

S. 139 : Return of income-Audit-Profession or business-Principle of natural justice-Order treating return as invalid without assigning reason not valid-Order set aside. [S. 139(9), Art. 226]

S.139: Return of income-Limitation-Where assessment order was passed and consequential demand raised by treating return and audit reports as belated without considering CBDT Notification dated 31-12-2020 extending time limits due to COVID-19 under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, the order was unsustainable-Return and audit reports filed on 14-02-2021 were within extended time up to 31-03-2021-Assessment order and demand set aside and Department directed to open e-portal to enable assessee to upload reports, if any. [Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, Art.226]

S.92BA : Transfer pricing-Specified domestic transaction-Arm’s length price-Market value of electricity-Indian Energy Exchange not comparable to supply by State Electricity Boards-Comparable uncontrolled price method not applicable in case of material dissimilarity-Deletion of transfer pricing adjustment justified. [S.80-IA(8), 92B, 92BA, 92C, 92F, 260A]

S. 92B : Transfer pricing-International transaction-Arm’s length price-Avoidance of tax-Corporate guarantee-Tribunal remanding matter to Assessing Officer for reference to Remand of order confined only to extent of examining whether undertaking of corporate guarantee constituted international transaction-The principal direction of remit by the Tribunal and a de novo exercise was liable to be undertaken by the Assessing Officer, the order of the Transfer Pricing Officer and the consequent draft assessment order also stood set aside [S.92CA, 260A]

S. 69C : Unexplained expenditure-Bogus purchases-Accommodation entries-Business of import and export and trading of diamonds-Information from Investigation Wing-Tribunal restricting disallowance to six per cent. based on assessee’s turnover and net profit justified-No question of law arose.[S. 147, 260A]

S. 68 : Cash credits-Trading in shares-Claim of long-term capital gains-Shares of company suspended by stock exchange Cannot be reason to make additions in absence of any material to suggest that purchase and sale of such shares were bogus-Deletion of addition by the Tribunal is affirmed. [S. 10(38), 45, 260A]

S. 43D : Public financial institutions-State financial corporation Interest on bad debts-Mercantile system of accounting-Cash basis-Interest of bad debts on cash basis-Order of Tribunal affirmed. [S. 145, Income-tax Rules, 1962, R. 6EA.]