S. 161 : Liability of representative assessee -Income from house property- Shares of beneficiaries are definite – Trust cannot be assessed separately at maximum rate- Tax on the share of each beneficiary will have to be separately calculated as if it formed a part of the beneficiary’ s income. Tax payable by the Trust will be the sum total of the tax calculated on the share of each beneficiary . [ S.22, 26 , 164 ]

S.148: Reassessment-Notice -Issue of notice at old address after expiry of period of limitation ,in spite of change in the official record by updating PAN data base- Reassessment is held to be bad in law [ S.147 ,292BB ]

S.115JB: Book profit- Depreciation charged at 80% – Restricting the claim of depreciation on windmills to 5.28 per cent as per Schedule XIV of Companies Act, 1956 is held to be justified [ S.32 ]

S.56: Income from other sources -Gift- Provisions of section 56(2)(vii)(b) are applicable to only those transactions which are entered into after 1-10-2009 [ S.56(2)(vii)(b) ]

S. 37(1) : Business expenditure -Warranty provision- Services by way of repair and replacement for a pre-defined period, said provision was eligible for deduction [ S.145 ]

S. 37(1) : Business expenditure -Warranty provision- Following consistent method in creating similar warranty provision year after year, no ad hoc addition could be made. stores and spares expenses pertained to normal repairs and maintenance of manufacturing facility and salary, wages and staff welfare were related to normal business expenditure, no ad hoc disallowance could be made. [ S.145 ]

S. 11 : Property held for charitable purposes – Providing technical and managerial services to common people through IT for efficient functioning in government departments and it was charging service fee in addition to statutory fee levied by government and assessee could enhance its fees, since assessee’s activities were not charitable. [ S.2(15) , 12AA ]

S. 5 : Scope of total income – Accounting Standard 9 -Accrual- Since agreement was valid for a period of five years and assessee had to carry on certain activities throughout period of five years by taking participation into management of business affairs of Vibes clinic among other responsibilities, assessee was justified in deferring income over a period of five years. [ S.145 ]

S. 151 : Reassessment – Sanction for issue of notice – If the CIT merely states “Yes, I am satisfied” while granting sanction to the reopening, it means that the sanction is merely mechanical and he has not applied independent mind. There is not an iota of material on record as to what documents he had perused and what were the reasons for his being satisfied to accord the sanction to initiate the reopening of assessment- Order was quashed and held to be void ab-initio .[ S.147, 148 ]

S.147: Reassessment-After the expiry of four years-If there is nothing in the recorded reasons to suggest that the income chargeable to tax which has escaped assessment is Rs. one lakh or more, the notice issued u/s 148 of the Act beyond four years of the end of the relevant assessment year is invalid [ S.148 ]