S. 9(1)(i): Income deemed to accrue or arise in India – Representative assessee — Trustee – Business connection -British Virgin Islands by company registered in Jersey- Trust in Jercy becoming sole beneficiary – Power to make investment in in India – Foreign Trustees recognised by Indian Income-Tax Law — Arrangement for purposes of commercial expediency – Income that accrued to the trust would not be chargeable to tax in India either by virtue of application of section 61 read with section 63 or section 161 of the Act conjointly with the provisions of article 24 of the DTAA. Income accruing – Ruling of AAR was quashed – DTAA-India -UAE [ S. 5(2), 10(23FB) 61, 62, 63 , 90, 160 , 161, 245-0, Indian Trusts Act, 1882, S. 1,3 , Art , 4 (2)(d), 24 ]

S. 147 : Reassessment – After the expiry of four years – Subsequent search and Seizure of another party – Loan activity not established – Recorded reasons must indicate the manner in which the Assessing Officer has come to the conclusion that income chargeable to tax has escaped assessment – Reason recorded cannot be substituted – Reassessment Notice was quashed .[S. 68 , 132, 133A, 148 , 153A, Art , 226 ]

Direct Tax Vivad Se Vishwas Act , 2020 .

S. 2(1)(a)(i): Person – Pendency of appeal – Application for condonation of delay was pending before CIT(A)- Notice of hearing was issued – Rejection of application on the ground that the appeal was not admitted was held to be not justified -Order of rejection set aside [S. 2(1)(a) (n), ITAct, S. 246A, 250 Art , 226 ]

S. 147: Reassessment – After the expiry of four years – Builder stock in trade- Notional income – Reassessment notice on the basis of Judgement of Delhi High Court in Ansal Housing Finance and Leasing Company Ltd ( 2013 ) 354 ITR 180 (Delhi)(HC) to assessee the income under section 23 of the Act was quashed [ S. 22, 23(5) , 148 , Art , 226 ]

S. 151 : Reassessment – Sanction for issue of notice – Issuance of Notice requires the sanction of PCIT where the Notice is issued after 4 years – Relaxation Act not a bar for appropriate sanction- Reassessment notice is held to be bad in law . [ S. 147, 148 , Art , 226 ]

S. 148: Reassessment – Notice-Constitutional validity – The delegation authorized being only for the purpose of enlarging limitation under a valid law, such delegation could not be exercised to resurrect the provision of law that stood omitted from the statute book by virtue of its substitution made by the Finance Act, 2021, w.e.f. 01.04.2021 – Reassessment notices issued under section 148 of the Act are quashed-It is left open to the assessing authority to initiate – re-assessment proceedings in accordance with the provisions of the Act, as amended by the Finance Act, 2021 after making due compliance as required under the law. [S. 147, 148A, 149, 151, 151A, 153, 292 Relaxation of Certain Provisions) Act, 2020 (TOLA), S. 3(1) of the Act 38 of 2020, Art. 226]

S. 271AA : Penalty-Failure to keep and maintain books of accounts-Documents-Specified domestic transactions (SDTs)-2 per cent of value of SDTs Exceeded qualifying amount of Rs. 5 crores-Transaction with relative was only to Rs. 1.80 lalks-Term relative as given in section 2(41), which will prevail for understanding connotation of term relative under section 40A(2)(b) over one given in Explanation to section 56(2)(v) of the Act-Levy of penalty was held to be not justified. [S. 2(41), 40A(2)(b), 56(2(v),92BA, 92D, 92E]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Commissioner has not pointed out any error for the relevant assessment year-Revision is held to be not valid. [S.40(a)(1), 92CA]

S. 254(1) : Appellate Tribunal-Powers-Pandemic-Request for an adjournment of six months was rejected-Directed to fix the hearing on 24-5-2021.

S. 251 : Appeal-Commissioner (Appeals)-Powers-Amounts not deductible-Deduction at source-Non-resident-Reimbursement of expenses- Cost of allocation-Not passed reasoned order-Matter remanded to CIT(A). [S. 9(1)(vii), 40(a)(i), 195, 250, 254(1)]