S. 252 :Appellate Tribunal – Appointment of Tribunal Members under new rules – Persons selected as Member of the Appellate Tribunal will continue till the age of 62 years and the person holding the post of President, shall continue till the age of 65 years.
S. 147: Reassessment-If the recorded reasons do not specify, prima-facie, the quantum of tax which has escaped assessment but merely state that it would be at least Rs.1,00,000, and if the reopening is to “verify” suspicious transactions, prima-facie, the reasons do not indicate reasonable belief of the AO and the notice is without jurisdiction-Interim stay was granted till final hearing . [ S.148 ]
S. 143(2) : Assessment – Notice -Reassessment- If the notice u/s 143(2) is issued prior to the furnishing of return by the assessee in response to notice u/s 148, the notice issued u/s 143(2) is not valid and the reassessment framed on the basis of said notice has to be quashed. S. 292BB does not save the assessment [ S.147) 148, 292BB ]
S. 2(1A): Agricultural income-Mushroom is not a ‘vegetable’, ‘plant’, ‘fruit’ or ‘animal’ but is a ‘fungus’. Anything which is produced by performing basic operations on the soil is an “agricultural product” and the income therefrom is “agricultural income”. The nature of the product and the fact that it is not a ‘plant’, ‘flower’, ‘vegetable’ or ‘fruit’ is irrelevant. The only relevant aspect is whether the production is by performing some basic operations on the soil. Accordingly the income from production and sale of Mushrooms can be termed as ‘agricultural’ income . [ S.10(1)]
S. 251 : Appeal – Commissioner (Appeals) – Powers –CIT(A) cannot enhance the assessment and also change the head of income without giving any show –cause notice . [ S.54F ]
S.206AA: Requirement to furnish Permanent Account Number-Payment to non –resident – Assessee can apply the rate prescribed under DTAA if it is beneficial to him- Provision of S.206AA does not override provisions of DTAA [ S.90,195 ]
S. 194I : Deduction at source – Rent –Hoarding- If a person has taken a particular space on rent and thereafter sub-lets same, fully or in part, for putting-up a hoarding, such payments would be liable for tax deduction at source under S. 194I and not under S. 194C of the Act .[ S.194C, 201(1))201(IA) ]
S.56: Income from other sources- Share premium- Addition cannot be made in respect of share premium received by assessee from its holding companies as said share premium was on account of capital transaction and was not an income within charging sections of Act . S 56(2)(viib) read with section 2(24)(xvi) are not made applicable to shares issued to non-residents mainly to encourage foreign investments. [ S.2(24)(xvi), 56(1) ,56 (2)(viib), 68, Companies Act, 2013 ,S,52, Companies Act, 1956 S.78 ]
S. 56 : Income from other sources –Fair market value of shares- Direct Cash Flow Method (DCF) -No evidence was produced for verifying the correctness of data supplied by the assessee .AO was justified in rejecting DCF method and adopting Net Asset value method . [ R.11UA ]
S.37(1):Business expenditure- Settlement charges paid to SEBI without admitting or denying guilt and was paid just to settle dispute, said settlement charges/consent fee could not be equated with penalty for violation of law under Explanation 1 to S. 37(1) of the Act and is allowable as business expenditure . [Securities and Exchange Board of India Act, 1992 , S.11, 1B and of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 R.11 ]