S.37(1): Business expenditure – Builder – Payments to tenants /occupants – Compensation payable for vacating the occupants – Mercantile system of accounting – Provision for liability towards payment to occupants/tenants – Accrued liability allowable – Mere deferment of quantification or payment does not render liability contingent. [S 28, 145, Accounting Standard-29 ]

S. 69: Unexplained investments – Foreign assets – Foreign investments were jointly held with the assessee’s husband, acquired through disclosed remittances in earlier years under the Liberalised Remittance Scheme (LRS), and supported by contemporaneous documentary evidence including bank statements, PMS reports, reconciliation statements, balance sheets and Schedule FA disclosures of both co-holders-No addition under section 69 could be made by treating the husband’s share of investment as unexplained investment in the hands of the assessee merely on suspicion and without any contrary evidence- Addition towards unexplained foreign investment deleted. [S. 143(3), 144B, Schedule FA]

S. 271DA: Penalty for failure to comply with provisions of section 269ST-Sale consideration over 2 lakhs-Genuineness of transaction was not doubted-Sales to farmers-technical and venial breach-AO is directed to delete the penalty. [S. 269ST, 274]

S.271D: Penalty-Takes or accepts any loan or deposit-Agent-An agent in a transaction of transfer of immovable property between a buyer and seller, cannot be held liable for penal consequence under section 269SS for receiving, for and on behalf of and handing over money to his principal-Not liable for penalty.[S. 269SS, 273B, Indian Contract Act, 1872, S. 226]

S. 271(1)(c): Penalty-Concealment-Disclosure of income in the course of survey-Prior to due date of filing of return-Income returned was accepted-Levy of penalty was deleted. [S.133A, 139(1)]

S. 271(1)(c): Penalty-Concealment-Failure to file return-Addition on estimate basis-Levy of penalty is held to be justified, though the addition was made on an estimate basis applying the explanation 3 [S. 139, 148]

S. 271(1)(b): Penalty-Failure to comply with notices-Strike by the Tax Bar Association on the first schedule date-Penalty was deleted-Delay of 24 days in filing of appeal was condoned. [S. 142(1), 253(5), 273B

S. 263: Commissioner-Revision of orders prejudicial to revenue-Penalty for under-reporting and misreporting of income-Direction of CIT to invoke the applicable penalty provisions under section 270A(9)(e) on the entire amount of estimated undisclosed income is bad in law. [S.153A, 270A(2), 270A(9)(e)]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Commodity trading-Revision order was quashed and set aside-Cash deposit-No enquiry was made-Revision order was affirmed-Delay in filing of appeal was condoned. [S. 143(3),254(1)]

S. 251: Appeal-Commissioner (Appeals)-Powers-Direction to AO beyond ground of appeal-Violation of natural justice-Failure to issue show cause notice-The directions of the CIT(A) are deleted. [S.69A]