S.147: Reassessment-After the expiry of four years- full & true disclosure of material facts, the assessee has the duty to disclose the primary facts, It is not required to disclose the secondary facts – If the AO intends to rely upon the second Proviso to s. 148 for the extended period of 16 years limitation, the same should be stated either in the notice or in the reasons in support of the notice- It cannot be done in the order rejecting the objections or at a later stage – Reassessment was quashed . [ S. 69A, 148 , 149 Art , 226 ]

S. 143(1A): Assessment -Additional tax – The object of S. 143(1A) is the prevention of evasion of tax- The burden of proving that the assessee has so attempted to evade tax is on the Revenue which may be discharged by establishing facts and circumstances from which a reasonable inference can be drawn that the assessee has, in fact, attempted to evade tax lawfully payable by it- Levy of additional tax was quashed . [ S. 32, 143(1) 154 264 Art ,226 ]

S. 68 : Cash credits -Bogus purchases – Unregistered dealers – Penalty proceedings producing affidavits and statements of unregistered dealers and establishing their credentials Penalty set aside – Addition is held to be not justified . [ S.143(3) ]

S. 44DA : Non-residents – Royalties – Computation – Prevails over S. 44BB after the amendment w.e.f. 01.04.2011 DTAA -India -Australia . [ S.9(1)(vii) 44BB Art . 12 (3) ,Art .226 ]

S.43B: Deductions on actual payment – Leave encashment – Method of accounting -Section does not place any embargo upon the autonomy of the assessee in adopting a particular method of accounting, nor deprives the assessee of any lawful deduction. It merely imposes an additional condition of actual payment for the availment of deduction qua the specified head -Provision is not unconstitutional-Interpretation of taxing statutes – Legislature has larger discretion- Enactment invalidated by Court — Legislature free to diagnose law and alter invalid elements — Does not mean legislature declares opinion of court invalid. [ S. 37(1) 43B(f), 145 , Art . 14 ]

S. 5 : Scope of total income – liaison office of the non-resident – A liaison office which is only carrying on such activity of a “preparatory or auxiliary” character is not a PE in terms of Article 5 of the DTAA. The deeming provisions in Sections 5 and 9 of the 1961 Act can have no bearing whatsoever- Not liable to tax in India- DTAA-India-UAE [ S. 2(24) , 4 , 9(1)(i) Art , 5 , 7 ]

S. 4 : Charge of income-tax – Mutuality – Contributions both from members and non-members and one member was vested with powers to control functioning and interests of other members, such an assimilation could not be termed as a social intercourse devoid of commerciality- Assessee, being not a mutual concern, could not be entitled to tax exemption- Exemptions are to be put to strict interpretation- Principle of mutuality is held to be not applicable -Order of AO is affirmed .[ S .2 (24 ) ]