S. 4 : Charge of income-tax–Capital or revenue-Interest subsidy received under TUFS (Technology Up gradation Fund Scheme), is capital in nature.[S. 28(i)]

S. 2(14)(iii) : Capital asset-Agricultural land-Exemption-Village Administrative Officer Confirming Land Agricultural At Time Of Transfer-AO to adjudicate issue afresh after enquiries and verifications with local authorities and of area-Reassessment is held to be valid. [S.10(37), 69, 147, 148]

S. 223 : Collection and recovery – Tax Recovery Officer – Charge over property – Attachment of property under Schedule II- Unless there is preference given to the Crown debt by a statute, the dues of a secured creditor have preference over Crown debts- As a charge over the property was created much prior to the notice issued by the TRO under Rule 2 of Schedule II to the Act and the sale of the property was pursuant to the order passed by the DRT, the sale is valid . [ S.222 ]

S. 220 : Collection and recovery – Assessee deemed in default – Strictures – Tax recovery – Stay – Gross suppression and misstatement, which led to a false projection of the outstanding liability due from the petitioner -Sought adjournment before CIT(A) without seeking modification of earlier order – Cost of Rs 5 lakh imposed -Petition is dismissed .[ S.220(6) Art .226 ]

S. 69: Undisclosed investments – Bogus capital gains – Penny stocks- Explanation is not sufficient to discharge the liability – Addition is restricted to 30% with a rider that same shall not be treated as a precedent in any other assessment year. [ S.10 (38), 45, 68 143(3) ]

S.37(1):Business expenditure -Illegal payments –Payment made to excise department for failure to comply the direction – Held to be not penal in nature – Explanation 1 to S. 37(1) of the Act is not applicable . [ Rajasthan Excise Act , 1950 ]

S. 153C : Assessment – Income of any other person – Search and seizure – Compliance with the requirements of recording of satisfaction is mandatory – If the AO of the searched person and the other person is the same, it is sufficient for the AO to note in the satisfaction note that the documents seized from the searched person belonged to the other person. Once the note says so, the requirement of s. 153C is fulfilled. [ S.132(1), 133A 158BD ]

S. 92A:Transfer pricing- Arm’s length price – Associated enterprises – Two enterprises can be treated as associated enterprises- Judgements of non jurisdictional High Courts are binding on the Tribunal- Addition is deleted . [ S. 92A(2) , 92C ]

S. 90 :Double taxation relief – Once an income of an Indian assessee is taxable in the treaty partner source jurisdiction under a treaty provision, the same cannot be included in its total income taxable in India as well i.e. the residence jurisdiction, is no longer good law in view of s. 90(3) inserted w.e.f. 01.04.2004-The mere amendment or substitution of a section does not affect the validity of notifications, circulars and instructions- Addition made by the AO is confirmed . .[ S. 90(3)144C ]

S. 80IA :Industrial undertakings – Conversion of a partnership firm into a company- Part IX of Companies Act- As per S. 575 of the Companies Act, the conversion of a partnership firm into a company under Part IX causes a statutory vesting of all assets of the firm into the company without the need for a conveyance-The business of the firm is carried on by the company and the latter is eligible for the benefits of S. 80IA (4) of the Act . [ S.80IA(4) , Companies Act , S.575 ]