S. 10B: Export oriented undertakings – Interest from fixed deposits made with Bank for obtaining letters of credit which has direct nexus with export activities is to be includable in computing the income -Matter was remanded for verification-Insurance claim which has direct nexus with industrial undertaking are eligible for deduction . Foreign exchange gain on sale of forward exchange contract arising out of eligible undertaking is entitle to deduction . Export proceeds that were unrealized, claimed that period for realization, had been extended by RBI Master Circular dated 1-7-2005 was directed to be allowed subject to verification . [ S.10A ]

S. 2(22)(e):Deemed dividend-Amount received back given in earlier years cannot be assessed as deemed dividend .

S. 2(22)(e):Deemed dividend- Director-Advance received for blocking deal of sale and purchase on behalf of the company for business transaction cannot be assessed as deemed divided.

S. 273A : Penalty – Commissioner – Power to reduce or waive -Long term capital gain shown as exempt in the original was accepted by filing the revised computation as income from other sources – Genuine hardship financially or in any manner was not proved -Rejection of application was held go be justified [ S. 10(38), 45, 56, 271(1) ( c ),273A((1)(4) ]

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –Net profit rate at 10% is applied – Followed the jurisdictional Bench decision and not the judgement cited by the assessee- Tribunal used jurisdictional discretion which cannot be rectified .

S. 245 : Refunds- Set off of refunds against tax remaining payable -Adjustment of the refund without following the ratio laid down by jurisdictional in Hindustan Unilever Ltd v. Dy CIT ( 2015) 377 ITR 281 ( Bom) (HC) and also speaking order is set aside .

S. 226 : Collection and recovery – Attachment of property—Limitation -Appeal – Ground that the recovery proceedings is now time barred is rejected on the ground that it was inappropriate for Tax Recovery Officer to continue proceedings for realization of tax arrears on account of pendency of proceedings challenging decisions taken by Tax Recovery Officer, irrespective of fact as to whether there was any interim order in such proceedings or not, while computing outer time limit provided for under sub-rule (1) of Rule 68B.[ Sch .II R. 11, 68B ]

S. 226 : Collection and recovery – Modes of recovery – As 20% of demand had not been deposited , assessee’s petition to stay of recovery is dismissed [ S.220(6), 226(3) ]

S. 220 : Collection and recovery – Assessee deemed in default -Waiver of interest – Principal amount of tax was not paid for over fourteen years – Rejection of waiver application for interest is held to be valid .[ S. 132,158BC, 220(2) ]

S. 197 : Deduction at source – Certificate for lower rate -Charitable trust – AO was directed to dispose the application expeditiously . [ S.11,12AA ]