Income-tax Act, 1961
S. 276C : Offences and prosecutions – Wilful attempt to evade tax – Strictures – Citizens should not be dragged into prosecution without concrete evidence – Failure to produce books of accounts- documents- False statement- Verification – HSBC, Switzerland- Unauthenticated documents from a third party – Alleged foreign bank accounts – Fraud – Unauthenticated information under DTAA – Search conducted – No incriminating material found – Identity not established – Assessment reopened – Penalty imposed – ITAT quashed reassessment – No prima facie case – Reopening held unjustified – Prosecution quashed – Repeated harassment due to baseless allegations – Quashing of criminal complaints upheld- DTAA -India – Switzerland ( French) . [ S.5, 69, 90, 132(4), 153A, 271(1)(b), 276C(1)(i), 276D, 277(1), 278E,Criminal Procedure Code , 1973 , S. 482, 483, Art, 26 Art . 227 ]

S. 144C : Reference to dispute resolution panel – Document Identification Number [‘DIN’] – Circulars issued by CBDT in exercise of its powers under Section 119 of the Act are binding on the revenue – DIN has to be generated for DRP proceedings -Order of Tribunal quashing the order is affirmed by High Court – No substantial question of law . [ S. 119, 143(3), 144(5), 260A ]

S. 115J : Company – Book profit – The AO has no jurisdiction to question the correctness of the profit and loss account prepared and certified by the Chartered Accountant .[ Companies Act , 1956 ]

S. 37(1)) : Business expenditure – Commercial expediency- Business loss – write-off of the deposits and interest – Amount lent to subsidiary- Allowable as business expenditure .[ S. 28(i) ]

S. 11 : Property held for charitable purposes – Charitable purpose Objects of general public utility- Construction of flats for its members – Transfer fees from new members – Interest on investment- No commercial activity – No violation of section 13(2) – Question of fact – No substantial question of law . [S. 2(15), 12A, 13(2), 260A]

S. 10B: Export oriented undertakings – Interest income on fixed deposits -Derived from business – Appellate Tribunal – Duty to pass speaking order – Matter remanded back for fresh adjudication .[ S. 254(1), 260A ]

S. 271E : Penalty for failure to comply with provisions of section 269T – Adjustments through journal entries for genuine business purposes – Penalty is deleted . [ S. 269SS, 269T, 273B ]

S. 271B : Penalty- Failure to get accounts audited – Applicability of provision of section 271A – Non-maintenance of books of account- Penalty is deleted .[ S.44AA, 44AB , 271A ]

S. 69: Unexplained investment – Source investment – Loan from mother and brother – Addition is deleted .

S. 56: Income from other sources – Share premium received by a private company – DCF Method is a valid method under rule 11UA – No defects pointed out in valuation report- Addition is deleted . [S . 56(2)(viib) , R.11UA ]