S. 12AA : Procedure for registration –Trust or institution- Registration cannot be refused on the ground that all initial trustees had taken citizenship of foreign country – Order of CIT(E) rejection of registration and application u/s 80G is set aside .[S.80G ,FEMA , 1999, S.6(5), Indian Trust Act 1882 , S 10,.60, 73 ]

S. 271AA : Penalty – Failure to keep and maintain books of accounts –Documents – International transaction – Transfer pricing – failure to maintain books of account as per rule 10D and failure to furnish documents u/s 92D(1) –No reasonable cause – Liable to penalty [S. 92D, 271G, 273B, Rule 10D]

S. 153A : Assessment – Search- Share Capital and Share premium – Statement recorded- No incriminating material was found in the course of search – Order is bad in law . [S. 68,132,132(4) ]

S. 36(1)(iii):Interest on borrowed capital – Loan taken for purchase of shares – Shares held as stock in trade – Business expenditure – Accepted in earlier year – Allowable as deduction- Department cannot take a different stand . [S. 37(1)]

S. 28(i): Business income -Agricultural income- Contract of growing and transporting grass – Growing and extracting grass – Agricultural Income – Transporting and relaying grass – Service – Business income. [ S. 2(1A),10(1)]

S. 11: Property held for charitable purposes-Dividend income – Income can be taxed if the investment is in violation of the provision -Exemption cannot be denied to the Trust in respect of other income .[ S. 11(5), 12AA,13(1)(d)]

S. 147: Reassessment -After the expiry of four years -If the AO is of the opinion that the issue requires verification, it tantamounts to fishing or roving inquiry. He is not permitted to reopen merely because in the later year, he took a different view on the basis of similar material-.Even if the question of taxing interest income under the DTAA was not in the mind of the AO when he passed the assessment, he cannot reopen if there is no failure to disclose truly and fully all material facts- Reassessment is held to be not valid-DTAA-India -Cyprus . [ S.148,, Art. 11(2). ]

S. 68: Cash credits- Bogus Capital gains-Penny Stocks-Though the AO did not find any mistake in the documentation furnished by the assessee, there is need for finding of fact on (i) the nature of the shares transactions; (ii) make-believe nature of paper work; (iii) Camouflage the bogus nature; and, (iv) the relevance of human probabilities etc – Addition is confirmed as cash credits [S.10(38) 45]

S.37(1): Business expenditure – Diversion by overriding title -Sharing of profit-The AO has to take into account the manner in which the business works, the modalities and manner in which SAP/additional purchase price/final price are decided and determine what amount forms part of the profit -Whatever is the profit component is sharing of profit/distribution of profit and the rest is deductible as expenditure –question of law is answered partly in favour of the revenue and partly in favour of the assessee- Matter is remitted to the AO to undertake the exercise as stated in the judgement after giving an opportunity to the respective assesses. [ S.40A(2),Sugarcane ( Control) Order 1966 clauses , 3, 5A ]

S. 272A : Penalty — delay in filing statement of tax deducted at source — difficulties in initial stage of change from manual filing to electronic filing of returns – plausible explanation given – Levy of penalty is held to be not justified. [S. 200(3), 272A(2)(k), 273B]