National Litigation Policy -Burdening the Court with frivolous litigation- Strictures passed –Union of India has created a huge financial liability by engaging so many lawyers for an appeal whose fate can easily imagined on the basis of existing orders in similar cases .Yet the Union of India is increasing its liability and asking the tax payers to bear an avoidable financial burden for the misadventures . Appeal was dismissed with cost of Rs .1,00,000/.

S.147 : Reassessment – Income of any other person – Issue of notice u/s 153C and did not continue with proceedings , again issuing a notice u/s 148 is held to be bad in law [S.148, S.153C]

S.145:Method of accounting – Work-in-progress- Construction and development of properties -Interest paid on borrowings as component of work in progress was capitalised and also claimed as deduction for same interest under the head income from house property . Matter was remanded to the AO to consider AS 10 and AS 16 and decide according to law [ S.22 ]

S.80P: Co-operative societies – Interest earned by a co-operative Society from deposits kept with co -operative bank is deductible .[S.80P(4) ]

S.80IB(10): Housing projects- Completion certificate – Time limit prescribed for completion of project prescribed for completion of project and production of completion certificate have to be treated as applicable prospectively to projects approved on or after 1-4-2015 .

S.56(2)(viiib): Income from other sources – Fair market value of shares sold – Choice of method of valuation is with the assessee- AO has no jurisdiction to insist that the assessee should only a particular method for determining the value of shares . Rule of constancy must be followed by the AO. [ R.11UA]

S.54: Capital gains- Profit on sale of property used for residence- Garage is also part of the house and eligible for exemption [ S.45 ]

S. 54 : Capital gains – Profit on sale of property used for residence-Purchase of four flats merged in to one residential house – Entitle to exemption. [ S.45 ]

S.33AB: Tea development account – Amount withdrawn from NABARD deposit account accordance with tea development Scheme 2007 was not utilised the entire amount with in year in which withdrawal was made but utilised partly after the end of said year amount cannot be taxed by deeming fiction [ S.33AB(7), 139(1)]

S.28(i): Business income -Income from house property -Manufacturing activities were closed and premises given on lease , rental income is held to be assessable as business income and remuneration paid to directors is held to be allowable deduction .[ S.22, 37(1)]