S. 153A : Assessment–Search-Income of any other person – Recording of satisfaction is mandatory -Notice has to be issued by Assessing Officer to other person under S. 153A although such Assessing Officer gets jurisdiction under S. 153C- In the case of searched person there is no requirement of recording of satisfaction. [S. 132, 153C]
S. 80G : Donation-Charitable institutions-Carried out some of charitable activities in furtherance to its objects-Rejection of exemption is held to be not valid. [S. 12AA, 80G(5)]
S. 45 : Capital gains- cash credits–Bogus accommodation entries- Penny stock – Sale of shares-Purchase by account payee cheque– Transaction was credited in DMAT account-Opportunity of cross examination was not given-Sale transaction cannot be treated as bogus merely on the basis of suspicious or surmises-Addition was deleted–Estimation of commission was also deleted. [S. 10 (38), 68, 69C, 132(4)]
S. 45 : Capital gains-sub-tenancy right-capital asset- Gains on surrender is liable to capital gains tax and not income from other sources. [S. 14, 55(2), 56]
S. 28(i) : Business loss-Held to be not allowable as not carried out any business activity in his individual capacity during the year.
S. 4 : Charge of income-tax–Association of persons-Mutuality- Assessee is not claimed the benefit of mutuality-AO cannot suo motu assessee the part of income as mutuality. [S. 2(31)(v)]
S. 2(22)(e) : Deemed dividend-Loan to a share holder–Not in the business of lending of money–Holding more than 10 percent voting power – Assessable as deemed dividend.
S. 2(15) : Charitable purpose–School-Expenditure incurred on catering services for maintenance of its boarding school- Held to be educational purposes –Entitle to exemption. [S. 11, 13, 12AA]
S. 271(1)(c) : Penalty – Concealment –Disallowance of expenses –Full details are disclosed – Levy of penalty is held to be not justified.
S. 245D : Settlement Commission – Power- Settlement Commission does not have power to reduce or waive interest statutorily payable under S. 234A, 234B, and 234C of the Act – Matter remanded to settlement Commission .[ S. 154, 234A, 234B, 234C,245D(4),245D(6), 245F]