S. 246A : Appeal – Commissioner (Appeals) –Strictures-The total callous, negligent and disrespectful behaviour shown by the Departmental authorities in this Court should not be tolerated at all. It is this kind of lack of judicial discipline which if it goes unpunished, will lead to more litigation and chaos and such public servants are actually a threat to the society. Commissioner Service tax (Appeals) should pay cost of Rs. 1 lakh from his personal funds.

S. 194IA : Deduction at source-Transfer of certain immoveable property other than agricultural land- The exemption of Rs. 50 lakh in S. 194IA(2) is applicable w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed- Each transferee is a separate income tax entity and the law has to be applied with reference to each transferee as an individual transferee / person-Each purchase consideration being Only Rs. 37, 50,000 , provision is not applicable. [S. 194IA(2), 201(1), 201(IA)]

S. 194C : Deduction at source–Contractors-The by-product allowed to be retained by the miller can notbe regarded as consideration ‘paid’ in kind by the procurement agency- Not liable to deduct tax at source. [S. 195]

S. 151 : Reassessment-Sanction for issue of notice-If the AO issues the notice for reopening the assessment before obtaining the sanction of the CIT, the reopening is void ab initio-The fact that the sanction was given just one day after the issue of notice makes no difference. [S. 147, 148]

S. 147 : Reassessment–Intimation-The AO cannot reopen on the basis of info received from DIT (Inv.) that a particular entity has entered into suspicious transactions without linking it to the assessee having indulged in activity which could give rise to reason to believe that income has escaped assessment- Such reopening amounts to a fishing inquiry- The AO has to apply his mind to the information received by him from the DDIT (Inv.) and cannot act on on borrowed satisfaction. [S. 143(1), 148]

S. 147 : Reassessment–Audit-A report of the Revenue audit party is merely information and opinion- It is not new or fresh or tangible material-If the reassessment notice is solely based on an audit opinion, it means it is issued on change of opinion which is not permissible. [S. 148]

S. 145 : Method of accounting-Accrual of income-Sale of prepaid mobile cards-Matching concept & principles of Revenue Recognition as per Accounting Standards (AS-9, AS-22)-Amount received on sale of prepaid cards to the extent of unutilized talk time did not accrue as income in the year of sale. [S. 4, 5, AS. 9, AS. 22]

S. 143(3) : Assessment-Survey -Bogus expenditure- Statement- Retraction-A statement recorded u/s.133A under fear / coercion cannot be relied upon by the AO if it is not corroborated by documentary evidence- The assessee is entitled to retract such statement. The AO is bound to give the assessee an opportunity to controvert evidence and cross examine the evidence on which the department places its reliance-A failure in providing the same can result in the order being a nullity–Income is estimated on the basis of gross profit. [S. 133A]

S. 69A : Unexplained money–Discretionary Trust-Black money-If the assessee is a discretionary beneficiary of the HSBC Bank Account and is not the owner, addition u/s. 69A cannot be sustained-In the case of a discretionary trust, the income of the trust cannot be added in the hands of the beneficiary. The trustees are the representative assessees who are liable to be taxed for the income of the trust. [S. 5, 6 , 133A, 147]

S. 68 : Cash credits-Black Money in HSBC Bank Account (i) Non-residents are not required to disclose their foreign bank accounts and assets to Indian income-tax authorities (ii) The assessee cannot be asked to prove the negative that the credits found in HSBC Bank is not sourced out of income derived from India (iii) the Govt / legislature never intended to tax foreign accounts of non residents (iv) mere holding of an account outside India does not have led to the conclusion that the amount is tax evaded. [S. 5, 69A ]