S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident – Amount not claimed as expenditure- No disallowance can be made – Exemption certificate for non deduction of tax at source- Once certificate has been issued no disallowances can be made – If income is not chargeable to tax in India -No disallowance can be made- Once it is held that income is not chargeable to tax in India, no disallowance can be made. [ S.195 , 197 ]

S. 37(1) : Business expenditure –Brand building – Advertisement expenses- Held to be revenue expenditure

S. 22 : Income from house property – letting out of its permanent structured on regular basis is assessable as income from house property – Receipt of license fee for use of craft stalls organized with object of promoting tourism, is taxable as business income [ S.28 (i) ]

S. 276CC : Offences and prosecutions-Failure to furnish return of income – Superior authority can also sanction prosecution–Imposition of penalty under Section 271F by AO not a pre-requisite for sanctioning prosecution –MD and other directors equally responsible for non-fling of return and hence other directors are also at default. [S. 271F, 278BB, 279]

S. 260A : Appeal-High Court-Maintainability-Small tax effect—the “tax effect” is much less than Rs. 20,00,000 for all the assessment years taken together and no material on record to show that the present appeals filed by the Revenue have any cascading effect—Therefore, the appeals are dismissed as withdrawn.

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record – Non consideration of case laws cited by Assessee during the hearing by Tribunal-Impugned order passed by the Tribunal dismissing the Assessee’s Miscellaneous Application as well as the Appellate order are set aside. [S. 254(1)]

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record–Transfer of income where there is no transfer of assets – Clubbing of income–Tribunal’s original order requires no rectification as it also considered reasoning of CIT(A) who took note of all the judgements relied by Assessee. [S. 60, 63]

S. 254(1) : Appellate Tribunal-Duties-Co-operative societies-Tribunal while considering the issue of deduction under S. 80P(2)(a)(i) to Assessee suddenly shifted to Section 80P(4) and held that the assessee is not entitled for the benefit of S. 80P(4) without providing an opportunity to the Assessee- Order of Tribunal s set aside. [S.80P(2)(a)(i), 80P(4)]

S. 234 B : Interest-Advance tax-Interest is chargeable at the rate provided under S.234B(3) of the Act on the differential tax payable on reassessment – as even before the regular assessment the tax paid under S. 140A was returned with interest and Department did not have any benefit of the amounts. [S. 140A, 234B(3)]

S. 226 : Collection and recovery -Arrest and Detention- Since the detenue did not co-operate with IT Dept in any manner and the TRO has followed all the due procedure before his arrest, there was no need to produce Assessee before the Magistrate and no violation has been made under Art. 21 of the Constitution of India – Writ of habeas corpus is dismissed [R. 73, 76, CRPC, S. 57, Art. 21]