S. 272A : Penalty – Failure to answer questions – Sign statements – Furnish information -New accountant of assessee ignorant of statutory provisions of tax deduction at source-Reasonable cause- Levy of penalty is held to be not justified. [S. 272A(2)(k), 273B]

S. 147 : Reassessment—So long as the income escaped assessment for which reasons were recorded has been assessed, the Assessing Officer has power to include other incomes which has escaped assessment and which comes to his knowledge in the course of the proceedings under this section. Disallowance of commission is held to be justified. [S. 37(1), 80IB]

S. 92C : Transfer pricing-Arm’s length price—Comparables-Providing back office support services-Followed rule of consistency -Different business hence cannot be comparable. [S. 92CA ]

S. 56 : Income from other sources–Fair market value–Shares price was determined as per R.11UA Book value of assets and liabilities declared by company at Rs 5 per share-AO determined at Rs.45.72 per share and made addition of Rs 40.72 per share as income from other sources- Tribunal held that addition made by the AO was held to be not justified. [S. 56(2)(viia), R.11UA]

S. 50C : Capital gains-Full value of consideration-Stamp valuation-When a specific request is made by the assessee to refer the matter to valuation officer, it was statutory duty laid down upon the Assessing Officer to obtain the valuation report by referring the matter to the District Valuation Officer-Reference to the District Valuation Officer is mandatory and the Assessing Officer having failed to follow the provisions of the Act, he could not be given one more chance to refer the matter to the District Valuation Officer-no addition could be made on the basis of value of property at circle rate of State Government. [S. 45 ]

S. 40(b)(i) : Amounts not deductible-Working partner– Remuneration–Supplementary partnership deed mentioning that amended provisions of S 40(b) is applicable -Deduction is available.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment to charitable organisation- Exemption was granted to charitable organisation and no tax was to be paid–Disallowance cannot be made in view of second proviso with retrospective operation. [S. 11, 12, 197(1), 201]

S. 40(a)(i) : Amounts not deductible – Deduction at source-Non -resident-Payment for providing global support services-No technical Knowledge, experience, skill, know-how, or process made available to the assessee-Payment is not for technical services — Not iiableto deduct tax at Source. — No Disallowance -DTAA-India-Singapore [ S.9(1)(vii),195 ]

S. 37(1) : Business expenditure-Ad-hoc disallowance-Entertainment expenditure — Disallowance on ad hoc basis is held to be not proper.

S. 37(1) : Business expenditure-Expenditure incurred prior to setting up its business is held to be not allowable-Just because the Assessing Officer had accepted the contention of the assessee in the earlier year on a wrong footing that would not be a reason to accept the claim that rule of res judicata would apply, when the facts showed a totally different scenario.