S. 2(22)(e) : Deemed dividend-Registered and beneficial share holder – Assessee is not share holder-Addition cannot be made as deemed dividend.

S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Application for compounding of offence for delay in depositing tax deducted at source was dismissed only on ground that nobody attended proceedings when said application was taken up for hearing- order was to be set aside and, matter was remanded back for disposal on merits. [S. 278B, 279]

S. 271AAA : Penalty-Search initiated on or after 1st June, 2007–Penalty cannot be levied on the ground that the assessee had not substantiated the manner in which the undisclosed income was derived is not sustainable where the assessee in the return of income had included that amount and no addition to the returned income was made by the Assessing Officer. [S. 132(4)]

S. 271(1)(c) : Penalty–Concealment–Advance received not shown as income–Revised return filed showing advance as income– Deletion of penalty is held to be justified–TDS deducted but no prof was filed–Levy of penalty was held to be not justified.

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Notice referred only one ground-Final order on other grounds– Claim of deduction examined by the AO- CIT was not justified in substituting his view–Revision is held to be bad in law. [S. 80IA]

S. 263 : Commissioner-Revision of orders prejudicial to revenue–Captive power plant–Allocation of profit –Revision is held to be not justified. [S.80I, 260A]

S. 254(2) : Appellate Tribunal- Duty- Rectification of mistake apparent from the record-First miscellaneous application was dismissed– Second miscellaneous application was disposed in chambers without hearing the assessee and without assigning reasons– Held to be unjustified- However considering the peculiar facts of the case the High High Court directed the assessee to pay Rs. 3,25,0000/- (Three crores and twenty five lakhs) as additional tax in respect of on money. [S. 254(1)]

S. 254(1) : Appellate Tribunal–Duties–Tribunal failed to act as last fact finding authority-It failed to discharge its duty and function expected of it by law-Tribunal set aside the matter to AO-Court held that Tribunal could have summoned all records and thereafter should have arrived at categorical conclusion whether First Appellate Authority was right or AO-This having admittedly not been done, court was of firm opinion that Tribunal failed to act as last fact finding authority—It failed to discharge it duties– Matter remanded to Tribunal—DTAA- India–Netherlands. [Art. 5(5)]

S. 250 : Appeal-Commissioner (Appeals)–Addition based on valuation report-There was no reason to refer matter to DVO especially when assessee was not having any income and has not started business during subjected assessment year-Explanation tendered under Rule 46A was found to be satisfactory—Report of DVO was not considered as valid. [S.142A, R.46A]

S. 245D : Settlement of cases—Voluntary offer of income-Commission computed assessee’s aggregate income which was neither objected by assessee nor by Department—Said suo motu offer in no way detracts from character of full and true disclosure- —Subsequently, all issues in applicant’s case was settled—Held, it was not open to Revenues to challenge correctness of facts recorded in order by Settlement Commission before this Court, particularly when it was not even remotely case of Revenue that consent was given/made on a wrong appreciation of law. [S. 245C]