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 ]

S. 12AA : Procedure for registration –Trust or institution- Proposed activities –Registration cannot be refused on the ground that no activities are carried out .

S. 37(1) : Business expenditure –Providing gifts to Medical practitioners by pharmaceutical companies –CBDT circular silent about pharmaceutical companies – Circular had no retrospective effect – Prohibition imposed by Indian Medical Council against acceptance of gift is on the medical practitioner and doctor and not on the pharmaceutical companies -Disallowance is deleted .

S. 37(1) : Business expenditure – Levy of interest for withholding payment of VAT- Compensatory interest u/s 30(2) – For delay in payment of additional tax under MVAT – Penal interest u/s 30(4) – Concealment or furnishing of inaccurate particulars of income – Paid by assessee to buy peace and end litigation with MVAT authorities – AO asked to bifurcate these payments – Compensatory interest allowed – Penal Interest disallowed. [ MVAT Act , 2002 , S.30(2) 30(4) ]