“Section 159(3)”

When an assessee provides the identity and address of a creditor or investor for a cash credit or share capital under Section 68, the burden shifts to the Department to establish lack of genuineness or creditworthiness, requiring it to conduct further inquiries; mere non-compliance by third parties to summons cannot be the sole basis for an adverse inference against the assessee.

The burden of proving an understatement of consideration or the receipt of 'on-money' lies solely with the Revenue, which must provide cogent evidence of actual receipt of higher consideration, beyond mere estimates or suspicion. Additions cannot be made based on assumptions like differences from circle rates without such evidence.

There is no legal requirement for a legal representative to report an assessee's death to the income tax department; consequently, a reassessment notice issued under Section 148 to a deceased person is invalid as it lacks proper jurisdiction.

Section 292B of the Income Tax Act applies only to procedural irregularities and cannot cure fundamental jurisdictional defects, such as the non-issue of a mandatory Section 148 notice for reassessment or framing an assessment against a non-existing or dead person.

Companies with significantly different turnovers (e.g., one above Rs. 200 crores and another below) cannot be considered comparable in transfer pricing analysis. Turnover is a relevant factor in assessing comparability.

The ITAT distinguishes the case of Pawan Kumar v. PCIT (2024) 159 taxmann.com 61 (Del.-Trib.) in the context of assessing interest on enhanced land acquisition compensation.

Low profits alone, or minor defects such as the non-maintenance of a stock register, do not justify the rejection of regularly maintained books of account under Section 145, nor do they permit additions to income without proving specific errors.

An assessee has the option to choose between the provisions of the Income-tax Act and a Double Taxation Avoidance Agreement (DTAA) in any given year, and the non-election of DTAA benefits in one year does not prevent claiming them in subsequent years.