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]

S. 220 : Collection and recovery-Assessee deemed in default-Time available for filing appeal-Interim protection granted to the petitioners shall continue till the stay petitions in the tax case appeals are heard- During appeal time, if recovery proceedings are initiated, it would virtually render the appeal as infructuous.[S. 260A]

S. 201 : Deduction at source – Failure to deduct or pay –Remand matter – Tribunal being final fact finding body ought to have looked into facts of present case rather making a remand basis Supreme Court’s decision- Appeal of the revenue is partly allowed. [S. 271C]

S. 184 : Firm–Registration-Firm-Assessment as a firm-Failure to file certified copy of partnership deed along with return – There is no change either in the constitution or in the shares of the partners–S. 184(3) allows the status/benefit of being assessed as a partnership firm if in an earlier assessment it was so assessed–Hence, the firm would continue to be assessed as a partnership firm in the subject assessment year despite not filing the certified partnership deed with the return of income filed.

S. 147 : Reassessment – Within four years- No where it has been mentioned that the property has been purchased by the assessee as a trustee/agent of the trust instead evidences prove Assessee himself to be the purchaser – Hence, re-opening is valid. [S. 148]

S. 145A : Method of accounting – Section 145A inserted w.e.f. April 1, 1999 are clarificatory in nature and would be applicable even for AYs prior to AY 1999-2000 – Excise duty has to be included in the value of closing stock of finished goods- Order of Tribunal is set aside. [S. 147]

S. 143(3) : Assessment-Hindu undivided family–Individual- Regardless of what an assessee claims, if the correct factual position is otherwise, the Assessing Officer has to adopt correct position-. Even if SM had filed returns in the status of ‘individual’ if the correct status is that of HUF, then there is no legal impediment for the legal heirs to claim that the succession was of the HUF. Tribunal was therefore right in law in holding that the status of the assessee was that of an HUF. [ S.2(31))(ii)]