S. 147 : Reassessment -Reason to believe -Based on decision of Tribunal accepting contention of Assessee’s son in his case that income was chargeable in assessee’s hands as first holder of investments in mutual funds—Formation of belief is within subjective satisfaction of Assessing officer- Notice for reopening of assessment is valid. [S. 148]

S. 147 : Reassessment—Shell companies–Bogus long term capital gains-Assessment under S.143(1)-Notice of reassessment based on information from departmental channels-Assessing Officer had no occasion to form opinion- pinion—Reassessment is held to be valid. [S. 10 (38), 45, 143(1), 148]

S. 147 : Reassessment—Doctrine of merger—Annulment of reassessment proceedings was held as invalid -The original assessment order would automatically get restored-Doctrine of merger does not apply. [S. 143(3), 148]

S. 147 : Reassessment –Issuance of notice under S. 143(2) is mandatory -Failure to issue is not procedural irregularity –S. 292BB does not dispense with the issuance of any notice that is mandated to be issued under the Act, but merely cures the defect of service of such notice if an objection in such regard is not taken before the completion of the assessment or reassessment-Entire proceedings including any order is liable to be quashed though the assessee had participated in the course of the reassessment. [S.143(2), 148, 153(2), 292BB]

S. 92C : Transfer pricing-Arm’s length price-Transactional net margin method—Exclusion of functionally different comparable companies-Finding of fact-No substantial question of law. [S. 260A]

S. 45 : Capital gains–Transfer- Vendor in possession till total consideration is paid-Transfer is not complete though the agreement is registered.[S.2(47)]

S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits – Where the income is computed applying the gross profit rate , no disallowances can be made by applying provisions of S.40A(3) [ S. 36, R.6DD(j) ]

S. 40(a)(ia) : Amounts not deductible – Deduction at source -Insertion of second proviso by the Finance Act , 2012 , with effect from Apri1, 2003, is declaratory and curative and applicable retrospectively with effect from 1-4-2005 — Payee offering to tax sum received in its return — No disallowance can be made.[S. 37(1), 201 (1)]

S.32: Depreciation- Capital or revenue expenditure -Technical knowhow payment – Agreement providing for payment of lump-sum consideration in five instalments- held to be capital in nature -Allowing the miscellaneous application the Court held that the assessee is entitle to depreciation.[S. 37]

S. 2(14)(iii) : Capital asset-Agricultural land- Solitary instance -Adventure in the nature of trade -Business -Purchase of agricultural land and sale of the said land after few years – Not deriving any income or not making any improvement of land and intention to earn profit cannot be the sole test to treat the transaction as adventure in the nature of trade – Solitary instance of sale alone could not characterise the transactions as an adventure in the nature of trade. [S. 2 (13)]