S. 28 (i) : Business income-Low production as compared to earlier year, variation in yield ratio meager and in some cases less than one per cent-Addition is not sustainable. [S. 145]

S. 14A : Disallowance of expenditure-Exempt income-No exempt income earned during the year–Satisfaction is not recorded-No disallowance can be made–Delay of 133 days in filing of appeal is condoned. [S. 115JB, 253(3), R. 8D]

S. 10AA : Special economic zones- Determination of profits where profits disclosed by assessee higher than ordinary profits—No arrangement between assessee and comparable companies to enable assessee to earn super normal profits—Concept of applying profit level indicators applied in determination of arm’s length price of international transactions not applicable for determination of profits for computation of exemption—AO is directed to allow entire deduction. [S.10A(7), 10AA(9), 80IA(10), 92CA]

S. 10A : Free trade zone–Export sale proceeds not received in India in foreign exchange within time specified-Assessee seeking extension of time-No extension of time allowed after period of six months from end of year and application not rejected—Amounts includible in export turnover though received belatedly-Disallowance of payments for failure to deduct tax at source enhancing taxable income of assessee—Entitled to exemption on enhanced income. [S. 40(a)(ia)]

S. 220 : Collection and recovery-Assessee deemed in default– Stay -The AO has directed the assessee to pay 20% of tax demanded.- Appellate authority started the hearing – Writ is not entertained. [Art. 226]

S. 220 : Collection and recovery-Assessee deemed in default– Stay –Society–Cash credits- Denial of exemption–Direction to pay only one percent of tax demanded as against 50% of disputed tax in dispute.[S. 68, 80P]

S. 194C : Deduction at source–Contractors-Up-linking Service Agreement-Payments made to Multi System Operators on account of channel carriage fees and other payments related to Up-linking charges and down-linking charges, Bandwidth and Air Time charges–Not in the nature of fees for technical services–Levy of penalty is held to be not valid.[S. 9(1)(vii), 194J, 221(1), 271C]

S. 147 : Reassessment–With in four years-Survey–Expenditure Failure to produce documents in the original assessment proceedings-Reassessment notice is held to be valid. [S. 133A, 148, Art.226]

S. 147 : Reassessment-After the expiry of four years- In absence of any failure on part of assessee to disclose fully and truly all material facts at time of assessment- Reassessment proceedings is held to be bad in law. [S. 80IA, 148]

S. 147 : Reassessment–After the expiry of four years-Failure to deduct tax deducted at source- Management consultancy fees- No omission or failure on assessee’s part to disclose all material facts relevant to original assessment proceedings- Notice for reassessment is held to be not valid. [S. 40(a)(ia), 194J, 195]