S.28(i): Business loss- Future and options- Shares and derivatives – Client code modifications (CCM) – No stretch of imagination can any AO consider a transaction on the stock exchange as income of a person other than the one who has either actually received monies in his bank account (In case of profit) and /or paid any monies from his bank account (in case of loss) – burden is on AO to establish that the losses were purchased or that there was payment in cash/cheque for such favors . Client code modification with in 1% of is absolutely normal [S. 143(3)]

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record–Appeal admitted before High Court- Rectification application is not maintainable.

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record – Judges can change or alter their decision at any time until the judgement is signed & sealed-A miscellaneous application on the ground that the ITAT Members stated a particular decision during the hearing but did the opposite in the order is not maintainable.

S. 143(3) : Assessment-Assessed income can fall below returned income-Disallowance can fall below disallowance suomotu voluntarily made by the assessee in the return of income filed. [S. 14A, 139, R.8D]

S. 143(2) : Assessment–Notice–Authorised representative-Objection to service of notice was objected by the Assessee–Objection was later withdrawn by the assesee’s representative by signing order sheet–Consent given by the representative is binding on the assesse-Challenge to the assessment on the basis that there was valid service is held to be not valid. [S. 288, 292BB]

S. 14A : Disallowance of expenditure – Exempt income -Only those instruments/securities which yielded exempt income during previous year relevant to assessment year would be considered for computing disallowance-If disallowance falls below disallowance under section 14A offered by assessee in return of income, revenue cannot charge tax on income which never was income of assessee chargeable to tax. [S. 139, 143(3), R.8D]

S. 4 : Charge of income-tax-Capital or revenue-Right to sue- Damages received for breach of development agreement are capital in nature & not chargeable to tax. [S. 2(14), 45]

Workmen- concession on facts and law made by counsel- Test to be applied to find out whether contract labourers are direct employees or not.

S. 276B : Offences and prosecutions – Failure to pay to the credit tax deducted at source -Mere delay in depositing TDS within the time limit prescribed in S. 200 & Rule 30 is an offense sufficient to attract S. 276B. The fact that the TDS has been deposited subsequently does not absolve the offense. The fact that penalty u/s 221 has not been levied is not relevant because there is an admitted delay in depositing TDS. [S. 200, 221, R.30]

S. 254(1) : Appellate Tribunal-Duties-Directions-ITAT should take appropriate steps and expedite hearing in old appeals.