S. 147: Reassessment – Survey – Income deemed to accrue or arise in India – Business connection – Permanent Establishment – Fixed place PE – Foreign company – Recorded reasons for belief that income had escaped assessment did not refer to facts specific to the relevant assessment years – Reassessment notice and order disposing of objections quashed – DTAA – India–Finland [S. 9(1)(i), 133A(2A), 143(3), 148, Art. 226]

S. 90: Double taxation relief – SLP dismissed against High Court order holding that a notification under section 90(1) is mandatory to give effect to a DTAA, or any protocol altering its terms, which would have the effect of changing existing provisions of law – OECD Model Convention – Art. 24 [Art. 136]

S. 9(1)(i): Income deemed to accrue or arise in India – Business connection – Permanent Establishment – Service PE – Seconded employees in India – Objective of facilitating activities of Indian subsidiary – Employees would not meet qualifying benchmarks of a PE – Order of Tribunal deleting the addition affirmed – DTAA – India–South Korea [S. 260A, Art. 5]

S.151A : Faceless assessment of income escaping assessment – Reassessment issued by Jurisdictional AO instead of FAO – Order is held to be valid on the presumption that the operation of Jurisdictional High Court in Hexaware Technologies Ltd. v. ACIT( 2024) 464 ITR 430 ( Bom)( HC) is stayed by the Honourable Supreme Court . [ S. 148 , 151 ,Art. 136 ]

S. 151 : Reassessment – Sanction for issue of notice –Shall be signed -Validity of reassessment – As per the CBDT Notification dated 31.03.2021, reassessment proceedings initiated prior to 01.04.2021 were to be governed under the old regime, and all functions were to be performed by the Jurisdictional AO- Sanction and jurisdiction is bad – Order of reassessment is quashed Unsigned sanction – Order is quashed and set aside . [ S. 120, 147, 148 ,149, 282A(1) R.127A(1) ]

S. 69C: Unexplained expenditure – Alleged bogus purchases – Estimate of 12% of alleged bogus expenses are affirmed – Pr. CIT v. Kanak Impex (India) Ltd ( 2025) 474 ITR 175 / 172 Taxman.com 283 (Bom)( HC) distinguished . [ S. 37(1))

S. 69C: Unexplained expenditure – Alleged out of books Murrum expenses – Where cash expenditure relates to business operations and its incurrence is not disputed, addition under section 69C cannot be made for the entire amount- Estimation of profit element is justified. Addition restricted to 5% of such expenses. [ S. 132 ]

S. 69A : Unexplained money – Alleged investment of unaccounted cash receipts in immoveable properties – The Tribunal held that without tangible evidence of investment, addition under section 69A on account of alleged purchase of immovable property is not justified. Addition deleted .

S. 69A : Unexplained money – Alleged unaccounted cash sales from Scrap and Piling business- Addition of gross receipts is not justified- Applying an average profit rate of 8.56% on such cash receipts is held to be reasonable – Order of CIT( A) is affirmed . [S.115BBE ]

S.37(1): Business expenditure – Salary paid to staff/ spouse and professional fees – Disallowance is restricted to 30% .[ S. 40(a)(ia),143(3) ]