S. 147 : Reassessment – With in four years- Wrong facts – Re-opening based on wrong facts is impermissible- Typographical error/ oversight in the reasons recorded for re-opening is not sustainable to uphold the re-assessment proceedings. [ S. 148 , 151, Art , 226 ]
S.147: Reassessment – After the expiry of four years – Capital gains – Penny stock – No failure to disclose material facts – Reassessment notice was quashed [ S. 45, 148 , Art 226 ]
. 144B : Faceless Assessment – Opportunity of hearing – Physical hearing not mandatory Assessee did not opt for virtual hearing even after being advised to do so – Assessment order cannot be challenged [ S. 144B(7), Art , 226 ]
S. 144B : Faceless Assessment – Vested right to a personal hearing – Order was set aside and the matter was to be remanded back to Assessing Officer for a fresh decision. [. 143 (3), 144B(7) (vii), Art , 226 ]
S. 92C : Transfer pricing – Arm’s length price – It is necessary that the controlled transactions be compared with uncontrolled transactions which are similar in all material aspects which determining the ALP. Since the comparable company fails in not only the service revenue from export/ ITES filter of 75% taken by the TPO but also the diminishing revenue filter and thus the Tribunal was correct in excluding such comparable.[ S. 133(6) ]
S. 80IA: Industrial undertakings – Interest – Generation of power – Interest income earned from advance given to employees during the course of business and also interest income earned from bonds issued by the sole customer to whom electricity is supplied is eligible for deduction. [ S. 80IA(4)(iv)]
S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation – Amalgamation – Demerger – [ S. 2(19AA) ]
S. 50B : Capital gains – Slump sale – Transfer of business undertaking- Specified hotels – Issue of preference shares and debentures – Exchange – Cannot be assessed as slump sale [ S. 2(42C) , 2(47), 45 ]
S. 45: Capital gains – When the Tribunal held that no capital gains can be levied since there is no consideration for transfer of a capital asset and thus the computation mechanism fails, there was no error in the said conclusion reached by the Tribunal. [ S. 48, 50D ]
S. 40(a)(ii) : Amounts not deductible – Rates or tax – Education cess- In view of retrospective amendment vide Finance Act, 2022 to section 40(a)(ii), education cess paid not allowable as an expenditure [ S. 37(1) ]