S. 14A : Disallowance of expenditure – Exempt income -Only those instruments/securities which yielded exempt income during previous year relevant to assessment year would be considered for computing disallowance-If disallowance falls below disallowance under section 14A offered by assessee in return of income, revenue cannot charge tax on income which never was income of assessee chargeable to tax. [S. 139, 143(3), R.8D]

S. 4 : Charge of income-tax-Capital or revenue-Right to sue- Damages received for breach of development agreement are capital in nature & not chargeable to tax. [S. 2(14), 45]

Workmen- concession on facts and law made by counsel- Test to be applied to find out whether contract labourers are direct employees or not.

S. 276B : Offences and prosecutions – Failure to pay to the credit tax deducted at source -Mere delay in depositing TDS within the time limit prescribed in S. 200 & Rule 30 is an offense sufficient to attract S. 276B. The fact that the TDS has been deposited subsequently does not absolve the offense. The fact that penalty u/s 221 has not been levied is not relevant because there is an admitted delay in depositing TDS. [S. 200, 221, R.30]

S. 254(1) : Appellate Tribunal-Duties-Directions-ITAT should take appropriate steps and expedite hearing in old appeals.

S. 147 : Reassessment –Non disclosure of receipt- Capital gains- Sale of shares- Long term – STT paid -The attempt of further verification would amount to rowing inquiry- Reassessment is bad in law. [S 2(29A, 10(38) ,115JB, .143(1), 148]

S. 143(2) : Assessment-Notice-If a notice is issued but is returned unserved by the postal authorities and thereafter no effort is made to serve another notice before the deadline, it shall be deemed to be a case of “non-service” and the assessment order will have to be quashed. [ [S.292BB, R.127, General Clauses Act, 1897, S. 27 ]

S. 92C : Transfer pricing-Arm’s length price-cannot determine The ALP at nil on an ad-hoc basis-If an authority like the RBI or Commerce Ministry has approved the rate of royalty, it carries persuasive value that the rate is at ALP.

S. 68 : Cash credits-Bogus capital gains from penny stocks-Mere allegation is not sufficient–No action from SBI–Capital gains cannot be assessed as cash credits. [S. 45]

S. 68 : Cash credits–Non–Resident–I Not an ordinary resident -if the assessee is non–resident amount found deposited in a foreign bank is not taxable in India either u/s 68 or u/s 69 of the Act. Period of 182 days to be considered for calculating residential status of a person migrated to Foreign Country [S. 6(6), 69]