S. 147 : Reassessment – Within four years- No where it has been mentioned that the property has been purchased by the assessee as a trustee/agent of the trust instead evidences prove Assessee himself to be the purchaser – Hence, re-opening is valid. [S. 148]

S. 145A : Method of accounting – Section 145A inserted w.e.f. April 1, 1999 are clarificatory in nature and would be applicable even for AYs prior to AY 1999-2000 – Excise duty has to be included in the value of closing stock of finished goods- Order of Tribunal is set aside. [S. 147]

S. 143(3) : Assessment-Hindu undivided family–Individual- Regardless of what an assessee claims, if the correct factual position is otherwise, the Assessing Officer has to adopt correct position-. Even if SM had filed returns in the status of ‘individual’ if the correct status is that of HUF, then there is no legal impediment for the legal heirs to claim that the succession was of the HUF. Tribunal was therefore right in law in holding that the status of the assessee was that of an HUF. [ S.2(31))(ii)]

S. 90 : Double taxation relief-Fees for technical services–Applicability of protocol–No separate notification required as protocol itself automatically applies of subsequent treaty with another OECD treaty (Finland)-DTAA-India–Netherland. [Art. 12]

S. 40(a)(ia) : Amounts not deductible -Deduction at source – Reimbursement of “shared services cost” to holding company – Reading of relevant clauses of agreement do not lead to inference that amount is paid on estimation- Not liable to deduct tax at source [ S.194C.]

S. 32 : Depreciation – Unabsorbed depreciation- Set-off – For the AY 1997-98, the claim for set off of unabsorbed depreciation is allowable against the income from other sources – However, in AY 1998-99, set off of carry forward unabsorbed depreciation could be allowed only against the profits and gains arising from business or profession. [S. 28(i), 32(2), 56, 263]

S. 12A : Registration–Trust or Institution-Merely because the charitable activity may mutually benefit members-Object itself would not cease to be charitable in nature. [S. 2 (15)]

S. 10(23C) : Educational institution–Accumulation income-Educational purposes-Assessee-school’s utilization of the amount of receipts (exceeding one crore) for purchase of land for further extension of school building, is to be considered for educational purpose only, hence, exemption is eligible.[S.10(23C)(vi)]

S.271(1)( c ): Penalty – Concealment – Undisclosed income surrendered during survey not included in the return- Tax was paid – Bonafide mistake – Deletion of penalty is held to be justified .[S.133A ]

S.68: Cash credits –Sale of car-Resale of car-Purchase was not doubted –On resale to from whom the car was purchased- Addition is held to be not justified .[ S.32 ]