S. 127 : Power to transfer cases–Mumbai to Pune-Violation of natural justice–Various statements referred by the PCIT was neither provided to the petitioner nor referred in the show cause notice-As the principle of natural justice is violated–Transfer order is quashed.
S. 263 : Commissioner-Revision of orders prejudicial to revenue– Interest adjusted against project expenditure-AO putting specific question and accepting the explanation-Revision is held to be not valid. [S. 145]
S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record–High court admitting department appeal on same issue-Review of order is impermissible. [S. 260A, 271AA, 271(1)(c)]
S. 143(2) : Assessment–Notice-Notice issued to wrong address- Department acknowledging mistake and serving notice by affixture at correct address-Service by affixture not permissible and could not be taken into account-Notice invalid and assessment is void ab initio. [S.143(3), 282, 292BB]
S. 56 : Income from other sources–Valuation of shares-Share premium-Addition on account of excess share premium unjustified. [S.56(2)(viib), R.11UA]
S. 49 : Capital gains-Previous owner-Cost of acquisition– Acquisition of immovable asset by succession of partnership- Subsequent amendment with retrospective effect providing for cost to be taken as cost to previous owner-Law prevailing at the time of filing of return applicable and not provision amended with retrospective effect. [S. 45, 49(iii)(e)]
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Failure to deduct tax at source-Filing Forms 15G and form no 15H before CIT (A) -Addition is unsustainable-CIT (A) ought to have verified from the banks- AO is directed to delete the addition. [S. 251]
S. 37(1) : Business expenditure-Capital or revenue-Trade mark licence utilisation fees based on turnover-Held to be revenue expenditure.
S. 37(1) : Business expenditure-Compensation for not complying with terms of contract-Civil consequence for not complying with certain terms of contract and had nothing to do with any offence- No violation of law–No disallowances can be made by applying the explanation 1.
S.45: Capital gains- Capital loss- Assignement of loan- Capital asset – Allowable as capital loss. [ S. 2(14)(a) , 2 (47), Wealth tax Act , 1957 S. 2( e ). ]