S. 5 : Scope of total income-Accrual-Interest accrued-Agreement indicating that assessee would be entitled to claim 21 per cent interest per annum; income automatically accrued to it with lapse of time and there was no question of amount being whisked away as not being income by calling in aid theory of no real income, etc.-Order of High Court affirmed.[S. 4, 145, Art. 136]

S. 4: Charge of income-tax-Income-Sales tax incentive/remission received under a State incentive scheme constituted a capital receipt not chargeable to tax. [S. 2(24)]

S. 4 : Charge of income-tax-Arbitral award-Deduction of tax at source-Amount deposited pursuant to interim order of Karnataka High Court-Right to receive had not crystallised and would be taxable only when dispute was finally resolved in assessee’s favour-Order of Tribunal set aside. [S. 145, 260A]

S. 4 : Charge of income-tax-Sales tax subsidy-Capital Investment Incentive Policy-Capital receipt-Order of Tribunal affirmed. [S.28(i), 260A]

S. 2(14)(iii) : Capital asset-Agricultural land-Classification of land is the exclusive prerogative of State under the Constitution of India, a Central Act cannot transgress into the domain of the State by providing a different definition of ‘agricultural land’ for the purpose of collecting income tax-Land was treated as agricultural land-Not liable to capital gains tax. [S. 45, 254(1)]

S. 197: Deduction at source – Certificate for lower rate – Foreign company –Non -Resident – No permanent establishment – Assessing Officer was directed to issue certificate for nil withholding tax. [S. 6(3),195, Rule 28AA, Art. 226 ]

S. 148A: Reassessment – Notice under section 148A(1) issued within the limitation, but material information was not furnished along with the notice – Subsequent supply of information after expiry of limitation – Invalid notice – Right issue of shares – Difference between the subscription price and the fair market value of the shares. Reassessment notice and consequential orders are quashed. [S. 56(2)(x), 147, 148, 148A(b), 148A(d), 149, Art. 226 ]

S. 56: Income from other sources -Rights shares allotted proportionately to existing shareholders – Difference between subscription price and fair market value cannot, by itself, be treated as income from receipt of property for inadequate consideration – Reassessment notice was quashed on merits as well as on legal grounds. [ S.56(2)(x) , 147, 148 , 148A(b) , 148A(d) , Art. 226 ]

S. 115BAC: Tax on income of individuals and Hindu undivided family – New tax regime – Option to opt out – Filing of Form No. 10-IEA opting for old tax regime – Contrary declaration in return of income – Prescribed form prevails – Deduction under old tax regime – Matter remanded [S. 143(1), 154, Chapter VI-A]

S. 153D: Assessment – Search and seizure – Prior approval of Joint Commissioner – Consolidated approval for multiple assessment years – Requirement of independent application of mind for each assessment year – Invalid approval – Assessments quashed – Order of Tribunal affirmed.[S. 153A, 153B, 143(3), 260A]