S. 45: Capital gains- Penny Stocks- 31000% increase in value of shares over 2 years is highly suspicious but cannot take the place of evidence. The addition cannot be made based on generalizations. Evidence collected from third parties cannot be used against the assessee without giving him a copy and an opportunity to rebut the same [ S.68 ]

S.37(1):Business expenditure – Allocation of expenses-Difference between “Res Judicata” and “Consistency Principle” explained. While “res judicate” does not apply to income-tax matters, the principles of consistency does. If the Revenue has accepted a practice and consistently applied and followed it, the Revenue is bound by it. The Revenue can change the practice only if there is a change in law or change in facts and not otherwise [ S.143(3) ]

New Okhla Industrial Development Authority (NOIDA) v. CCIT ( 2018) 95 taxmann.com 58(SC)/ www.itatonlin.org
S. 35 :Scientific research – Rejection of weighted deduction in respect of donation cannot be denied when the institution was enjoying approval within the meaning of S. 35(1)(ii) as on date of receipt of donation, no matter that the approval was cancelled subsequently with retrospective effect.

S. 10(20): Local authority –Industrial township referred to in proviso to Article 243Q is not equivalent to a “municipality” and a “local authority” – Income is not entitle to exemption .[S.10(20A), Art. 243P,243Q ]

S. 271(1)(c) : Penalty – Concealment – Accepting addition does not mean assessee furnishing inaccurate particulars — Levy of penalty is held m to be not valid .

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Order was passed by the AO after conducting detailed enquiries on all issues —Revision is not valid .

S. 249 : Appeal – Commissioner (Appeals) – E- Filing of appeal-Appeal filed in manual form cannot be dismissed on technical grounds during transition period. CIT(A) is directed to condone the delay in filing the appeal in electronic format and to decide the issue on merits [ S.246A ]

S. 192 : Deduction at source – Salary -Contributions to unrecognised Provident Fund is not eligible for deduction u/s 80C. Interest accrued to Employees contribution to unrecognised Provident Fund is taxable as income from other sources and liable for deduction of tax at source [ S.2(38) 80C, 201(1) 201(IA) ]

S.147: Reassessment —Merely on the basis of statement recorded by investigation wing and cross examination was not provided- Reopening assessment on borrowed satisfaction rather than his own satisfaction – Reassessment is held to be invalid [ S.148 ]

S.147: Reassessment-After the expiry of four years- Bogus share capital- Statement was retracted -No allegation of failure on part of assessee to disclose material facts-Reasons recorded without independent application of mind – Reassessment is held to be in valid [ S.148 ]