S. 10A : Free trade zone – Data processing unit – Back office work and preparation of applications for patent in U. S. A – Entitle to exemption -CBDT notification. No .S.O .890( E ) dt . 26 -9 -2000 (2000) 245 ITR (St.) 102) [ S.80HHE ]

S. 10 (23C): Educational institution-Surplus utilised for educational purposes —Entitled to exemption- Court also observed that when the earlier year was quashed by High Court , the Assessing Officer should have taken cognizance and the revenue should have withdrawn the petition .[ S.10(23C) (iiiab) , 260A ]

S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Agreement for export of garments – Inspecting garments, ensuring quality and export within stipulated time – Income of non- resident is not taxable in India- No substantial question of law – DTAA-India – Hong Kong [ S. Explanation 2 S 9(1)(vii) , 195 , 201 (IA), 260A , Art , 12 ]

S. 2(22)(e):Dividend – Reassessment – Deemed dividend-Deferred liability —Not Shareholder of lender company — Loan not assessable as deemed dividend [ S.147 , 148 ]

Securities Transaction Tax ( STT) -Finance Act, 2004

S.105: Penalty for non collection and non -deposit of STT- Imposition of penalty is not automatic- Deletion of penalty is held to be justified .[ S.100 , 108 ]

S. 276CC : Offences and prosecutions – Failure to furnish return of income – Failure to file return- Prior approval of CCIT was sought by CIT before passing the sanction order u/s 279- Prosecution is held to be not maintainable [ S.133A, 139(1), 142(10, 153, 278E, 279, Criminal Procedure Code, 200 ]

S. 276C : Offences and prosecutions – Wilful attempt to evade tax – Delay in payment of tax and filing of return – Delay in handing over books of account- Criminal proceeding is held to be clear abuse of process of law – Proceedings pending before Chief Metropolitan Magistrate was quashed . [ S.132 , 276(2)]

S.271D: Penalty – Takes or accepts any loan or deposit -Dairy seized – Deletion of penalty is held to be valid [ S.132 ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Penny stock- Capital gains- Order passed in haste and without proper enquiry can be revised – PCIT can not conclude the issue and direct the Assessing Officer to decide it in a particular manner [ S.45 ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Rejection of books of account – Revision order directing the Assessing Officer to make addition u/s 68 or 41 is held to be not valid [ S.41, 68, 145(3)]