S. 28(i) : Business loss-Held to be not allowable as not carried out any business activity in his individual capacity during the year.

S. 4 : Charge of income-tax–Association of persons-Mutuality- Assessee is not claimed the benefit of mutuality-AO cannot suo motu assessee the part of income as mutuality. [S. 2(31)(v)]

S. 2(22)(e) : Deemed dividend-Loan to a share holder–Not in the business of lending of money–Holding more than 10 percent voting power – Assessable as deemed dividend.

S. 2(15) : Charitable purpose–School-Expenditure incurred on catering services for maintenance of its boarding school- Held to be educational purposes –Entitle to exemption. [S. 11, 13, 12AA]

S. 271(1)(c) : Penalty – Concealment –Disallowance of expenses –Full details are disclosed – Levy of penalty is held to be not justified.

S. 245D : Settlement Commission – Power- Settlement Commission does not have power to reduce or waive interest statutorily payable under S. 234A, 234B, and 234C of the Act – Matter remanded to settlement Commission .[ S. 154, 234A, 234B, 234C,245D(4),245D(6), 245F]

S.139AA:Quoting of Aadhaar number-From assessment years 2019-20 ,linkage of PAN with Aadhaar card is mandatory .

S.54F : Capital gains- Investment in a residential house – Construction activities of the new house started before the date of sale of original asset – Beneficial provision and should be liberally interpreted- Entitle to exemption . [ S.45 ]

S. 115JB : Book profit – Banking – Insurance – Electricity company- Are not company bound by provisions of Companies Act – (Pre amendment by Finance Act, 2012)-Provision is not applicable to a banking company , insurance & electricity cos- The mechanism provided for computing book profit in terms of S. 115JB(2) is wholly unworkable for a banking company- When the machinery provision fails, the charging section also fails-Provision is not applicable -The anomaly was removed by the Finance Act, 2012-However, the amendments are neither declaratory nor clarificatory but make substantive and significant legislative changes which are applicable prospectively.

S. 56 : Income from other sources – Fair Market Value-DCF method –Closely held company – The fact that the company is loss-making does not mean that shares cannot be allotted at premium. The DCF method is a recognised method though it is not an exact science & can never be done with arithmetic precision. The fact that future projections of various factors made by applying hindsight view cannot be matched with actual performance does not mean that the DCF method is not correct. [ S. 56(2)(viib), Rule 11UA. ]