Chartered Accountants Act, 1949

S. 21: Misconduct – SEBI and Disciplinary Committee of ICAI have found the respondent Chartered Accountant is guilty of several irregularities in public issue of a company – Removal of name from Register of Members of ICAI for a period of one year was held to be valid .

S. 80IB : Industrial undertakings – Splitting up or reconstruction-Printing press- New industrial undertaking of printing press is not the expansion of existing unit, hence entitle to deduction.

S. 37(1) : Business expenditure -Acceptance of deposits prohibited by law- Interest paid on deposits is held to be not allowable as deduction in view of Explanation to S. 37(1) of the Act .[ Kerala Money Lenders Act, 1958,S.4, 17 , RBI Act, 1934 S. 45S ]

S.92C: Transfer pricing Arm’s Length Price -Selection of comparables — Functional dissimilarities and distinction in services provided has to be excluded . [ S.92CA ]

S. 92C : Transfer pricing – Arm’s length price -Unless it is shown that there are important functional dissimilarities or other material facts ,exclusion or inclusion of other comparable would not constitute substantial question of law [ S.260A ]

S. 254(2A): Appellate Tribunal –Stay- Court held that the assessee has already paid Rs 25.66 crores and the appeal is coming up for hearing accordingly the assessee was directed to pay another Rs 10 crores only during the pendency of appeal .[ S.254(1) ]

S. 271D : Penalty -Takes or accepts any loan or deposit –Deposits from staff members in cash without any reasonable cause levy of penalty was held to be justified . [ S. 269SS, 273B ]

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –The limitation period for filing a Rectification Application has to be computed from the date of “communication” of the order and not from the date of passing the order. The fact that the order was pronounced in open court is not relevant because the parties will not be aware of the mistakes therein until after perusal of the order.

S. 151 : Reassessment – Sanction for issue of notice – If the AO reopens on the basis of information received from another AO without further inquiry, it means he has proceeded “mechanically” and “without application of mind”. If the CIT does not give reasons while according sanction, it implies that he has also not applied his mind. Both render the reopening void [ S.147, 148 ]

S. 147:Reassessment -Bogus purchases – Even the assessment which is completed u/s 143(1) cannot be reopened without proper ‘reason to believe’. If the reasons state that the information received from the VAT Dept that the assessee entered into bogus purchases “needed deep verification”, it means the AO is reopening for doing a ‘fishing or roving inquiry’ without proper reason to believe, which is not permissible.[ S.143(1), 148 ]