S.80IA: Industrial undertakings – Enterprises engaged in infrastructure development – Captive power plant – Specified domestic transaction – Transfer Pricing -ALP of inter-unit transfer of electricity – For benchmarking transfer of power from captive power plant to assessee’s own manufacturing units, the proper CUP is the tariff at which State Electricity Distribution Company supplies power to industrial consumers and not the lower rate at which it procures power from generators – TPO was not justified in adopting MSEDCL purchase rate and making downward TP adjustment – Relief granted by CIT(A) upheld. [S. 10B, 80A(6) , 80IA(8) ,92BA , 92C , 92F(ii)]

S. 153C: Assessment of income of other person – Addition on basis of loose papers / diaries seized from third party – No reference to assessee by name – Identification only on basis of code “DD”, mobile data, WhatsApp chats and Truecaller – Not permissible – No incriminating material “belonging to” or “relating to” assessee – Jurisdiction u/s 153C not valid – Addition of ₹32.14 crore deleted.[ S. 69, 69A , 69C , 132 , 132(4A), 292C ]

S. 68 : Cash credits – Long-term capital gains – Penny stock – Addition based solely on Investigation Wing report without independent enquiry – Documentary evidences not disproved – Transactions through demat and stock exchange – Addition deleted – Suspicion cannot replace evidence.[ S. 10(38 ), 45 ]

S. 69A: Unexplained money – Cash deposits during demonetisation – Explained source as past withdrawals and share of siblings – Affidavit was filed before the Tribunal reaffirming the submissions made before the Assessing Officer and CIT (A) – Addition deleted as AO failed to rebut evidence and discharge burden- Additional ground admitted . [ S. 115BBE ,254(1) ]

S. 270A: Penalty – Under-reporting of income – Disallowance of employees’ contribution to PF/ESI – Addition already made in intimation u/s 143(1) – No “under-reported income” – Claim based on jurisdictional High Court judgment – Issue debatable – No penalty leviable – Revision u/s 264 maintainable – Commissioner cannot reject revision without reasons – Penalty and revision order quashed. [S. 36(1)(va), 143(1), 143(3), 153A, 264, Art .226 ]

S. 281 : Certain transfers to be void-Recovery of tax-Notice of demand-Deceased-Transfer of property-First charge of State-Transfer becomes void-Over-riding effect of section 26B of 1963 Act-Creating first charge on State-Properties were subsequently purchased by petitioner from auction, buyer, Income-tax Department could not proceed against said properties lawfully in possession of petitioner for realizing arrears payable by deceased assessee under Income-tax Act. [S. 156,Kerala General Sales Tax Act, 1963, s. 26B, Art.226]

S.271D: Penalty-Takes or accepts any loan or deposit-Assessing Officer not recording satisfaction in assessment order that there had been violation of section 269SS-High Court quashed the penalty order-SLP dismissed.[S. 269SS, Art. 136]

S. 271(1)(c) : Penalty-Concealment-Not specifying the charge in the notice-None of relevant columns had been indicated nor had irrelevant columns been struck off-Penalty notice was invalid in law-SLP dismissed. [S. 274, Art. 136]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Unsecured loans-AO raised queries, examined identity, creditworthiness and genuineness of creditors, and took a plausible view-General observation by PCIT without specific finding as to what inquiry was lacking-Revision order not sustainable. [S. 143(3), 153A]

S. 263: Commissioner-Revision of orders prejudicial to revenue-AO allowed deduction under section 54B after detailed inquiry-View taken by AO reasonable and plausible-Twin conditions for section 263 not fulfilled-Revision order not sustainable. [S. 54B, 260A]