S.43CA: Transfer of assets- other than capital assets- Full value of consideration- stock in trade-Agreement value – Stamp valuation – Safe harbour tolerance of 10% applies with reference to valuation determined by DVO – Once DVO valuation substitutes stamp duty valuation, no addition can be made if variation between agreement value and DVO valuation is within prescribed tolerance band – Addition deleted. [S.50C , 143(3)]

S. 68 : Cash credits – Loan received – Identity, creditworthiness and genuineness proved – Assessee also proved source of source – Loan subsequently repaid with interest after deduction of TDS – Addition deleted. [S. 143(3)]

S. 147: Reassessment – After the expiry of four years – Change of opinion – Reassessment based on material already examined in original assessment is invalid – Notice issued in the name of a non-existing amalgamating company is void ab initio and not curable u/s 292B. [S. 143(3), 148, 292B]

S. 12AB : Procedure for fresh registration – –Commissioner has no power to impose contingent or precautionary conditions while granting registration – Conditional registration granted subject to outcome of proposed SLP before Supreme Court is beyond jurisdiction and liable to be vacated – Once jurisdictional High Court decision holds the field, authorities are bound to follow the same. [S. 12AB(4), 12AB(5), 80G, Rule 17A]

S.80IA: Industrial undertakings – Enterprises engaged in infrastructure development – Captive power plant – Specified domestic transaction – Transfer Pricing -ALP of inter-unit transfer of electricity – For benchmarking transfer of power from captive power plant to assessee’s own manufacturing units, the proper CUP is the tariff at which State Electricity Distribution Company supplies power to industrial consumers and not the lower rate at which it procures power from generators – TPO was not justified in adopting MSEDCL purchase rate and making downward TP adjustment – Relief granted by CIT(A) upheld. [S. 10B, 80A(6) , 80IA(8) ,92BA , 92C , 92F(ii)]

S. 153C: Assessment of income of other person – Addition on basis of loose papers / diaries seized from third party – No reference to assessee by name – Identification only on basis of code “DD”, mobile data, WhatsApp chats and Truecaller – Not permissible – No incriminating material “belonging to” or “relating to” assessee – Jurisdiction u/s 153C not valid – Addition of ₹32.14 crore deleted.[ S. 69, 69A , 69C , 132 , 132(4A), 292C ]

S. 68 : Cash credits – Long-term capital gains – Penny stock – Addition based solely on Investigation Wing report without independent enquiry – Documentary evidences not disproved – Transactions through demat and stock exchange – Addition deleted – Suspicion cannot replace evidence.[ S. 10(38 ), 45 ]

S. 69A: Unexplained money – Cash deposits during demonetisation – Explained source as past withdrawals and share of siblings – Affidavit was filed before the Tribunal reaffirming the submissions made before the Assessing Officer and CIT (A) – Addition deleted as AO failed to rebut evidence and discharge burden- Additional ground admitted . [ S. 115BBE ,254(1) ]

S. 270A: Penalty – Under-reporting of income – Disallowance of employees’ contribution to PF/ESI – Addition already made in intimation u/s 143(1) – No “under-reported income” – Claim based on jurisdictional High Court judgment – Issue debatable – No penalty leviable – Revision u/s 264 maintainable – Commissioner cannot reject revision without reasons – Penalty and revision order quashed. [S. 36(1)(va), 143(1), 143(3), 153A, 264, Art .226 ]

S. 281 : Certain transfers to be void-Recovery of tax-Notice of demand-Deceased-Transfer of property-First charge of State-Transfer becomes void-Over-riding effect of section 26B of 1963 Act-Creating first charge on State-Properties were subsequently purchased by petitioner from auction, buyer, Income-tax Department could not proceed against said properties lawfully in possession of petitioner for realizing arrears payable by deceased assessee under Income-tax Act. [S. 156,Kerala General Sales Tax Act, 1963, s. 26B, Art.226]