S. 158BB : Block assessment – Undisclosed income –Addition cannot be made on the basis of returns filed by assess’s wife and other related entities on the basis of valuation reports of departmental Valuer – Diamond found in the course of search addition was held to be justified as the retraction was made after inordinate delay and not supported by any evidence. [ S.132(4) ]
S.147: Reassessment-After the expiry of four years- Information from investigation wing -No averment of failure on part of the assessee to disclose fully and truly all material facts necessary for assessment – Reassessment is held to be not valid [ S.148 ]
S.142(2A): Inquiry before assessment– Special audit– Accounts were complex and there was multiplicity of transactions – Notice was approved by PCIT after application of mind and also opportunity to be heard was given to assessee — Order for special audit is held to be valid .
S. 127 : Power to transfer cases – No evidence of change of business -Opportunity of hearing was not given – Letter proposing to transfer of case is held to be not valid .
S. 80IA :Industrial undertakings – Distribution of electricity- Penalty Recovered from suppliers for delay in execution of contracts, unclaimed balances of contractors, rebate from power generators, interest on fixed deposits for opening letter of credit to power grid Corporation is includible in profits- Miscellaneous recovery from employees, difference between written down value and book value of released assets, commission for collection of electricity duty, rental income is not part of profits.
S. 10B: Export oriented undertakings – Processing done outside specified area-Mere location of the plant outside the export oriented unit and customs bonded area is not a disqualification to claim deduction – Entitle to exemption .
Gift -tax Act, 1958
S.4:Gifts to include certain transfers — Firm — Induction of new partners to develop the business of the firm —Reallocation of shares will not amount to gift hence not liable to gift tax . [ S. 4(1)(a),26(6)]
S. 263 : Commissioner – Revision of orders prejudicial to revenue –
The AO had examined entire records and there was nothing erroneous in his order, therefore revision order of commissioner was not valid.
S. 254(1) : Appellate Tribunal- Powers- When the Supreme Court stayed the appeals before High Court on issue raised before Tribunal, the Tribunal is justified in not hearing the appeal . [ S.80IB(9)]
S. 158BC : Block assessment – Estimation of undisclosed income was held to be justified — Expenses during Block Period could not be set off against undisclosed income