S. 14A : Disallowance of expenditure – Exempt income – Sub-section (2) of section 14A does not authorize or empower AO to apply prescribed method irrespective of nature of claim made by assessee, AO has to first consider correctness of claim of assessee having regard to accounts of assessee. [R. 8D]

S. 11 : Property held for charitable purposes–Education-Accumulation- Section 11(1B) is not applicable where the assessee-society accumulated its income under section 11(2). [S.12AA]

S. 10A : Free trade zone – Trail production-Commercial production- Trial production was different from commercial production and benefit of exemption provision was allowable from date of commercial production- Exemption is available for the AY.2010-11. [S. 10B]

S. 271AAA : Penalty-Search initiated on or after 1st June, 2007– Failure to specify and substantiate manner in which undisclosed income was derived rather embarked upon mercy plea that he was making surrender to buy peace of mind and avoid litigation-levy of penalty is held to be justified. [S. 153A]

S. 271(1)(c) : Penalty-Concealment–Debatable issue-Merely because the addition is confirmed levy of penalty is not justified- Deletion of penalty on the sole ground that the High Court has admitted the Appeal and framed substantial questions of law, it cannot be said that the entire issue is debatable one and under no circumstances, penalty could be imposed.

S. 263 : Commissioner-Revision of orders prejudicial to revenue– Ex-servicemen Corporation-Registered under Companies Act as any other company- Not entitle to exemption–Revision is held to be valid–On merit also it was held that not entitle the exemption u/s 10(26BBB] [S.10(26BBB)].

S. 263 : Commissioner-Revision of orders prejudicial to revenue– unsold flats held as stock in trade-Notional value-In view of contrary decisions of High Court, issue as to whether notional income on unsold flat held by assessee-builder as stock-in-trade in its books of account should be assessed as income from house property is a debatable issue, and hence order of Assessing Officer for not bringing unsold flats to tax at notional letting value under head ‘income from other sources’ which was one of possible views- Revision is not valid. [S. 22, 23, 28(i)]

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record -Employees of statutory corporations cannot be regarded as employees of State or Central Government- Failure to deduct tax at source under bonafide belief-Held not liable to pay penalty – AO filed miscellaneous application-Held miscellaneous application is not maintainable–Tribunal cannot recall its previous order in an attempt to rewrite the same. [S.10(10AA), 192, 201(1), 201(IA)]

S. 249 : Appeal-Commissioner (Appeals)-Form of appeal and The power conferred upon the CIT(A) to condone the delay in filing of appeal is to alleviate genuine suffering of taxpayers-He has the power and corresponding duty to exercise the power when circumstances so warrant-U/s. 14 of the Limitation Act, delay caused due to proceeding in a wrong forum has to be condoned- [ S.249(3)]

S. 92C : Transfer pricing-Even if the assessee does not report the specified transaction & the AO has no occasion to notice it, the TPO has no jurisdiction to suo moto determine the ALP-He has to call for a reference from the AO-.Alternate remedy is not a bar if the action is without jurisdiction & can be severed from the rest. [S. 40A (3A), 92BA(i), 92CA, 92E, Art. 226]