S. 226 : Collection and recovery – Modes of recovery –Appeal- The AO is not justified in insisting on payment of 20% of the demand based on CBDT’s instruction dated 29.02.2016 during pendency of appeal before the CIT(A)- This approach may defeat & frustrate the right of the assessee to seek protection against collection and recovery pending appeal-Such can never be the mandate of law- CIT(A) is directed to hear the appeal expeditiously-Pendency of appeal the stay is granted . [ S. 220(6),246 ]

S. 90: Double taxation relief – If a non-resident assessee derives income from multiple sources in India, it is entitled to adopt the provisions of the Act for one source and the DTAA for the other source, whichever is more beneficial to it, even though the payer is common for both sources- Fees received by the assessee would be taxable under the Act as FTS (fees for technical services) under section 9(1)(vii) r.w.s. 115A(1)(b) @ 10% and not as business income and thus held that the maximum possible taxability in the hands of the assessee could not exceed 10%.- DTAA- India -Singapore. [S.90(2),115A(1)(b), Art.5(6) ]

S. 68: Cash credits- Share premium-The AO cannot assess the share premium as income on the ground that it is “excessive”. The share premium worked out in the Valuation Certificate is the minimum amount that can be collected by the assessee under RBI regulations- There is no bar on collecting higher amount as share premium-There are several factors that are taken into consideration while issuing the equity shares to shareholders/investors, such as Venture capital funds and Private Equity funds- The premium is determined between the parties on the basis of commercial considerations and cannot be questioned by the tax authorities-The AO is not entitled to sit on the arm chair of a businessman and regulate the manner of conducting business .

S. 139 : Return of income – Extension of due date- Levy of interest- CBDT is directed to consider the representation of the association and take decision on extension of date by another 15 days – Extension of due date for the purpose of Explanation 1 to S. 234A for waiver of interest and decide the same by passing speaking order preferable before 10 th October , 2018 .[ S. 119, 139(1), 234A ]

S. 251 : Appeal – Commissioner (Appeals) – Powers –Enhancement- Notional trading loss-Set –off against income under different head –Enhancement on the basis of annual report and statement enclosed to return cannot be considered as new source of income – Disallowance of notional trading loss by valuing shares at lesser amount without any basis and also set-off said loss against income under different head- Enhancement and disallowance is held to be justified . [ 73 ]

S. 197 : Deduction at source – Certificate for lower rate –When tax was deducted on the basis of certificate issued by the AO ie on handling and transport charges under S.194C and on, ware housing charges under S.194I, the ITO (TDS) was unjustified in holding assessee in default for short deduction of tax on grounds that assessee was liable to deduct TDS on entire amount under S.194I.[ s.194C, 194I, 201 ]

S. 145 : Method of accounting –Project completion method-Land owner-Project completion method consistently followed by the assessee cannot be rejected on the ground that the percentage completion method is followed by its developer . [ AS.7 ]

S. 153A : Assessment – Search- Set -off of brought forward loss- No incriminating material was found in course of search relating to those expenses, claim raised by assessee was to be allowed. [ S.132 ]

S. 124 : Jurisdiction of Assessing Officer – Reassessment – Survey-Notice was issued by Joint Commissioner – Objection was not raised within time provided under section 124(3)(b) from date of issuance of said notice, jurisdiction of Joint Commissioner stood confirmed- Since Assessing Officer had completed reassessment with presumption that assessee did not have registration under section 12AA, however, fact remained that assessee was granted registration under section 12AA, issue in assessment orders was to be re-adjudicated afresh after considering registration granted to assessee under section 12AA .[ S.12AA, 120 , 148 ]

S. 115JAA : Book profit – Deemed income – Tax credit – Amount of MAT tax credit available from earlier year, inclusive of surcharge and education cess etc., should be reduced from amount of tax determined on total income of current year after adding surcharge and education cess, etc. [ S. 234B, 234C ]