S. 37(1) : Business expenditure –Providing gifts to Medical practitioners by pharmaceutical companies –CBDT circular silent about pharmaceutical companies – Circular had no retrospective effect – Prohibition imposed by Indian Medical Council against acceptance of gift is on the medical practitioner and doctor and not on the pharmaceutical companies -Disallowance is deleted .

S. 37(1) : Business expenditure – Levy of interest for withholding payment of VAT- Compensatory interest u/s 30(2) – For delay in payment of additional tax under MVAT – Penal interest u/s 30(4) – Concealment or furnishing of inaccurate particulars of income – Paid by assessee to buy peace and end litigation with MVAT authorities – AO asked to bifurcate these payments – Compensatory interest allowed – Penal Interest disallowed. [ MVAT Act , 2002 , S.30(2) 30(4) ]

S. 80IB(10) : Housing projects- Date of agreement with land owner dated 11-07 -1997 – Approval of project by local authority was on 30 -09 1998 – Project completed before 31-03 2008 – Entitle to deduction .

S. 271B : Penalty–Failure to get accounts audited-Assessee bona fide in treating commission income as turnover along with other turnover which was below limit for audit -Department treating unaccounted turnover as part of total turnover holding assessee liable for penalty for failure to get accounts audited -Penalty liable to be deleted.

S. 271C : Penalty-Failure to deduct at source–bonafide belief–whether payee is in the category of government or local authority–No penalty is leviable.

S. 271B : Penalty-Failure to file audit report within time-reasonable cause for delay–Audit report filed before assessment proceedings- Penalty is not warranted.

S. 271AAA : Penalty-Search initiated on or after 1st June, 2007– Retraction of statement–Filing return admitting the additional income after retraction the assessee is not entitle to exemption-No requirement of recording satisfaction for imposing penalty-Immunity from penalty– both conditions need to be satisfied. [S. 132(4)]

S. 271(1)(c) : Penalty–Concealment–Long term capital loss-Bona fide clerical mistake on part of assessee same has been explained before AO-Return of income accepted and there was no loss to revenue–No concealment of income or no furnishing inaccurate particulars of income-Levy of penalty is held to be not valid. [S. 45]

S. 271(1)(c) : Penalty–Concealment Amount of deduction hardly makes any difference on tax liability–then penalty levied on wrongful claim of the same needs to be deleted–as it was claimed on account of human error– no mala-fide intention of the assessee. [S. 35D]

S. 271(1)(c) : Penalty–Concealment-Penalty Notice bad in law-If limb under which penalty has been initiated not specified. [S. 274]