S. 69C : Unexplained expenditure – Bogus purchases – Information from Investigation Wing – Addition restricted to 4% justified – Additional ground of Revenue to disallowance at 100% of alleged bogus purchases is rejected – No justification for 100% disallowance in absence of suppression of sales –Books of account not rejected – PCIT v. Kanak Impex (India ) Ltd [2025] 172 taxmann.com 283/ 474 ITR 175 (Bom)( HC) is referred . [ S.145, 147 , 148 ]

S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice – Faceless assessment – Notice is issued by the Jurisdictional Assessing Officer – On writ the Court set aside the notice issued under Section 148 and all other proceedings/orders emanating therefrom- Honourable Court has granted liberty to the Revenue to revive the order simply by moving a Praecipe before this Court- The Court also observed that once the Petition is revived and restored, the same would have to be decided on its own merits considering that several other issues are also raised in challenging the Notice issued under Section 148 [ S. 148 ,Art. 226 ]

S. 271(1)(c) : Penalty – Concealment – Disallowance of deduction- Method of accounting – Plausible interpretation of law – No malafide intention – Disclosed all relevant facts and no false statement –Penalty is deleted . [S. 43B , 145 , 260A ]

S. 4 : Charge of income-tax – Capital or revenue – Sales Tax Incentive – Purpose test – Incentive for setting up industrial unit in backward area – Sales tax incentive under 1979 and 1983 Schemes is capital receipt, not chargeable to tax.[ S. 28(i), 43B, 1979 Scheme . 1983 Scheme]

S. 11 : Income from property held for charitable or religious purposes – Delay in e-verification of audit report – Audit report in Form 10B filed in time- E-verification delayed due to COVID- Delay is not intentional – Delay of 101 or 254 days within permissible limit – Rejection of condonation against principles of substantive justice – Procedural lapses should not override substantive justice, especially when there was no mala fide intent or negligence by the petitioner- Rejection order is quashed – Delay condoned . [S. 12A, 12AA, 80G , Form No 9A, form No 10B , Art.226 ]

S. 268A : Appeal – Instructions -Circulars – Monetary limits -2 crores- Applicability of revised CBDT monetary limits (Circular No 3 of 2018 dt 11-7 2028 (2018) 405 ITR 29 ( St), Circular 9 of 2024 , dated 17 th September , 2024 (2024) 468 ITR 1 ( St))- Exceptions Apply Prospectively – Pending Appeals Covered by revised threshold – Appeal of Revenue is dismissed.[ S.260A ]

S. 45(4) : Capital gains – Distribution of capital asset – Dissolution of firm – Introduction of new partner – Amount received by existing partner for sacrificing his profit-sharing ratio – Realignment of share ratio – No transfer of asset – No capital gain taxable on relinquishment of share ratio-Post amendment , 2021 , Finance Act , 2021 . [S. 2(14), 2(47),9B , 45]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Accumulation of income-Corpus donation-Issue dealt in revision proceedings was unrelated in character from issue of corpus donation received by assessee which was dealt in re-assessment proceedings-Revision order was beyond period of two years-order is barred by limitation-Revision is quashed and set aside.[S. 11, 12A 143(1), 147, 148]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Government-funded educational institution-Assessing Officer has allowed the exemption based on a correct appreciation of facts and applicable law-Revision order is set aside. [S. 10(23C)(iiiab)]

S. 251 : Appeal-Commissioner (Appeals)-Powers-Ex-parte assessment order-Foreign tax credit-Order is set aside-DTAA-India-USA [S. 90, 139(1), Form No.67, Art. 25]