S. 14A: Disallowance of expenditure relating to exempt income – For the purpose of Rule 8D, only investments which have actually yielded exempt income during the year can be considered – No disallowance of interest where own funds exceed investments – Presumption that investments are made out of interest-free funds. [R. 8D(2)(ii), 8D(2)(iii)]

S. 69: Unexplained investments – Property purchased in the name of daughter – Entire consideration paid directly by father from disclosed bank account out of natural love and affection – Identity of father, payment trail and source of funds established – Absence of formal gift deed cannot justify addition – Addition deleted. [S. 148A, 147, 115BBE]

Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
S. 4: Undisclosed foreign income and assets-Offences and prosecution-Personal appearance of accused Effect of section 205 of the Code of Criminal Procedure-Discretion to dispense with personal appearance Black Money (Undisclosed Foreign Income and Assets) and Imposition of tax Act, 2015-Criminal Procedure Code, 1973, S. 205.

S. 285BA : Obligation to furnish annual information return-Penalty-No proper explanation for delay-Imposition of penalty justified [S.273B, Art. 226]

S. 276B: Offences and prosecutions-Failure to pay to the credit tax deducted at source-Assessee depositing tax deducted at source belatedly with penalty-Deputy Commissioner directed to consider assessee’s reply and afford opportunity of hearing [S. 276BB, Art. 226]

S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Failure to deposit tax deducted at source-tax and interest had been deposited before prosecution was launched-Prosecution not valid.[S. 278B, Art. 226]

S. 275 : Penalty-Bar of limitation-Notice for levy of penalty must be issued before expiry of limitation-Notice was barred by limitation. [S.274, 275(1)(c)]

S. 275 : Penalty-Bar of limitation-Concealment-Penalty should be levied within a reasonable time-Order levying penalty eleven years after passing of assessment order and fourteen years after return-Held to be not valid. [S. 271(1)(c), 275(1)(c)] was filed Not valid-Income-tax Act, 1961, s. 275(1)(c).

S. 275 : Penalty-Bar of limitation-First appellate order was received in the financial year 2006-2007-The penalty should have been imposed within March 31, 2008 as per the proviso, especially when the order was one passed after June 1, 2003-The orders were passed on March 31, 2009 much after the limitation period-Not valid.[S.260A, 275(1)(a)]

S. 271E: Penalty-Repayment of loan or deposit-Book entries discharge of liabilities-Repayment of loan in cash-No evidence that loan was repaid in cash-Penalty not imposable. [S. 269SS, 269T]