S. 4 : Charge of income-tax-Interest on deposits of grants received by nodal agency of Government-Issue is remitted back to the AO to ascertain whether the interest income has been remitted back; if the entire interest income has been remitted back to the Central Government/State Government, then no addition is sustainable on account of the interest income earned on the deposits.[S. 5]

S. 4 : Charge of income-tax-Controlled financially as well as administratively by the State Government-Pollution Control Board established by State Act-Winding up the funds would revert to the State Government-Income is not taxable. [The Orissa Water (Prevention and Control of Pollution) (Amendment) Act, 1974, S.4(1), Art. 12, 289(1)]

S. 271F : Penalty-Return of income-Failure to furnish-Non-Resident-Pendency of appeal before Tribunal-Order passed by the CIT(A) confirming the levy of penalty is set aside and the issue is restored back to the AO-AO is directed to take up the issue of penalty after the disposal of the appeal filed by the assessee before the Tribunal and decide the issue in accordance with the law. [S.69A, 271(1)(b)]

S. 271AA : Penalty-Failure to keep and maintain books of accounts-Documents-International transaction-Transfer pricing-Initiated on different grounds-Levied on different grounds-Had a reasonable basis for non-reporting such transactions-Levy of penalty is deleted.[S.92D, 273B]

S. 271(1)(c) : Penalty-Concealment-Not specifying the charge-Penalty is deleted. [S.270A, 274]

S. 271(1)(b) : Penalty-Failure to comply with notices-Non appearance was not with any malafide intention-Penalty is deleted. [S. 142(1), 271B]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Assessing Officer has applied his mind-The Principal CIT to hold bare minimum inquiry before passing the order which in the instant case has not happened. Revision order is quashed. [S. 143(3),144, 144B, 147, 263(1)(b)]

S. 251 : Appeal-Commissioner (Appeals)-Powers-Natural justice-Not dealing on merits-Matter remanded to the CIT(A) to decide on merits. [S. 250,251(1)(a)]

S. 251 : Appeal-Commissioner (Appeals)-Powers-co-terminus powers with that of the AO-Revaluation of asset-Assessing the income under different head-Cash credits-Capital gains-Powers exercised by the CIT(A) cannot be said to be beyond the scope of provisions of s. 251(1)-What was considered by the CIT(A) is the very same income which arose out of the revaluation of the asset held by the firm. [S. 45(4), 68]

S. 251 : Appeal-Commissioner (Appeals)-Powers-Revision-Revision order is set aside by the Tribunal-Issue subject matter of consideration or examination by a higher authority in the rank of hierarchy, the lower authority in the rank or the authority exercising equal powers cannot sit in judgment over the order passed by the higher authorities-The powers exercised by the CIT(A) under s. 251(1) to enhance the assessment towards consideration paid for purchase of property in the hands of the assessee is beyond the scope of the powers of the CIT(A)-Investment in purchase of property-Capital contribution by partners-Addition is deleted. [S.69, 153A, 251(1), 263]