Interpretation of Taxing statutes-Legislative powers-Challenges Discrimination or arbitrariness can be substantial or procedural-Such policy can be struck down. [Art. 14, S. 254(2A)]

S. 276C : Offences and prosecutions-Wilful attempt to evade tax-False statement-Assessee had been forced to upload returns by mentioning that entire amount of tax as otherwise returns would not have been accepted by software system-It could not be said to be misstatement-Delayed payment of tax would not amount to evasion of tax-All directors of Company cannot be automatically prosecuted for any violation of Income-tax Act-Held, yes-Whether there has to be specific allegations made against each of Directors who is intended to be prosecuted-At time of taking cognizance of an offence and issuance of process, Court taking cognizance is required to pass a sufficiently detailed order to support conclusion to take cognizance and issue process-The income-tax Department was directed to consider the provisions of a facility in its software to upload income-tax returns with actual amount paid and for the system to accept the returns even though the complete amounts had not been paid. [S. 277, Code of Criminal Procedure, 1973 Code of Criminal Procedure, 1973, S. 191, 202(2), 292]

S. 271(1)(c) : Penalty-Concealment-Alternative remedy-Writ will not lie. [S. 68, 144, 246A, Art. 226]

S. 271(1)(c) : Penalty-Concealment-Not striking off the irrelevant limb-Penalty is held to be bad in law. [S. 274]

S. 271(1)(c) : Penalty-Concealment-Not striking off the irrelevant limb-Levy of penalty is held to be bad in law. [S. 274].

S. 260A : Appeal-High Court-Foreign Fluctuation loss-Allowed as deduction-Arguments not taken in appeal cannot be agitated. [S. 37 (1)]

S. 260A : Appeal-High Court-Jurisdiction issue was not raised before lower Authorities-Cannot be raised first time before High Court-Only if the finding of fact of the tribunal is perverse can the question of correctness of the order in appeal arise. [S. 92(4), 260A]

S. 254(2A) : Appellate Tribunal-Stay-Provision for automatic vacation of stay on completion of 365 days, whether or not assessee responsible for delay in hearing appeal-Discriminatory and arbitrary-Proviso to be read to provide for vacation of stay on expiry of periods in question only where delay attributable to assessee-The expression “permissible” policy of taxation would refer to a policy that is constitutionally permissible. If the policy is itself arbitrary and discriminatory, such policy will have to be struck down. [Art. 14, 226]

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record-Tribunal has the power to rectify errors in its order. [S. 36 (1)(iii)]

S. 254(1) : Appellate Tribunal-Powers-ex parte order-Tribunal is required to dispose of the appeal on merits after hearing the respondent-Order passed by Tribunal holding that the Assessee is not interested in prosecuting the appeals is unsustainable. [ITAT R. 24]