S. 270A: Penalty – Under-reporting of income – Disallowance of employees’ contribution to PF/ESI – Addition already made in intimation u/s 143(1) – No “under-reported income” – Claim based on jurisdictional High Court judgment – Issue debatable – No penalty leviable – Revision u/s 264 maintainable – Commissioner cannot reject revision without reasons – Penalty and revision order quashed. [S. 36(1)(va), 143(1), 143(3), 153A, 264, Art .226 ]

S. 281 : Certain transfers to be void-Recovery of tax-Notice of demand-Deceased-Transfer of property-First charge of State-Transfer becomes void-Over-riding effect of section 26B of 1963 Act-Creating first charge on State-Properties were subsequently purchased by petitioner from auction, buyer, Income-tax Department could not proceed against said properties lawfully in possession of petitioner for realizing arrears payable by deceased assessee under Income-tax Act. [S. 156,Kerala General Sales Tax Act, 1963, s. 26B, Art.226]

S.271D: Penalty-Takes or accepts any loan or deposit-Assessing Officer not recording satisfaction in assessment order that there had been violation of section 269SS-High Court quashed the penalty order-SLP dismissed.[S. 269SS, Art. 136]

S. 271(1)(c) : Penalty-Concealment-Not specifying the charge in the notice-None of relevant columns had been indicated nor had irrelevant columns been struck off-Penalty notice was invalid in law-SLP dismissed. [S. 274, Art. 136]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Unsecured loans-AO raised queries, examined identity, creditworthiness and genuineness of creditors, and took a plausible view-General observation by PCIT without specific finding as to what inquiry was lacking-Revision order not sustainable. [S. 143(3), 153A]

S. 263: Commissioner-Revision of orders prejudicial to revenue-AO allowed deduction under section 54B after detailed inquiry-View taken by AO reasonable and plausible-Twin conditions for section 263 not fulfilled-Revision order not sustainable. [S. 54B, 260A]

S. 254(1) : Appellate Tribunal-Powers-Expert opinion of technical matters-Inspection of factory to decide the matter-Not perverse or any excess of jurisdiction. [S. 260A]

S. 245C : Settlement Commission-Settlement of cases-Conditions-Applications of petitioners were validly filed before ITSC which legally and factually existed, i.e., much before Finance Act, 2021 was promulgated on 1-4-2021-Application shall be treated as pending applications to be considered by Interim Board-Direction was issued to consider application. [S. 119(2)(b), 153A, 245C(1), 245C(5) Art. 226]

S. 245C : Settlement Commission-Settlement of cases-Conditions-Abolition of Settlement Commission-Interim Board Settlement Commission inoperative from 1-2-2021-Application on 17-3-202, i.e., prior to date when assent of President of India had been received for Finance Act, 2021-Application was restored to file of Settlement Commission. [S. 24B. 245C(1), 245(5) Art. 226]

S. 244A : Refunds-Interest on refunds-Compensation of acquisition of agricultural land-Assessee neither made aware of deduction of tax at source nor issued form 16A by deductor-Delay in application for refund under circumstances beyond control of assessee Assessee-Entitled to interest on refund-SLP delay of 457 days-SLP dismissed on account of delay as well as on merits. [S.194LA, Art. 136]