S. 13 : Denial of exemption-Trust or institution-Investment restrictions –Rent charged to trustee less than market rate – Violation of section 13 exemption cannot be denied- Only the income to the extent of violation is liable to tax at maximum marginal rate .[ S. 11, 12 ,12A, 13(1)(c)(ii)]
S. 271C : Penalty – Failure to deduct at source –Mercantile system of accounting – Provision made on estimate basis – Tax was deducted and deposited TDS upon crystallization of liability to pay expenses on receipt of invoices- Penalty is not leviable .[ S. 40(a)(ia), 145 ]
S. 263 : Commissioner – Revision of orders prejudicial to revenue – Capital gains – Agricultural land – Issue scrutinized in the assessment proceedings and under rectification proceedings – revision is bad in law [ S. 45 , 154 ]
S. 263 : Commissioner – Revision of orders prejudicial to revenue – Compensation received under compulsory acquisition is not chargeable to capital gains – Revision is not valid [ S. 45(5), Right to Fair Compensation and Transparency in Land Acquisition Act , 2013, S.96 ]
S. 263 : Commissioner – Revision of orders prejudicial to revenue – Bogus purchases – Addition of 12. 5% of alleged bogus purchases – Revision is not valid [ S. 143(3) ]
S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record – Ex -parte order – Dismissed for non-prosecution without dealing with the merits of the case – Time limit of six months does not apply – Application was filed after 678 days of passing of order- Order recalled [ S. 254(1), ITAT Rule 24, 25 ]
S. 251 : Appeal – Commissioner (Appeals) – Powers – CIT(A) does not have power to dismiss an appeal for non-prosecution-Order set aside and restored the matter to decide on merits . [ S. 251(2)]
S. 199 : Deduction at source – Credit for tax deducted – Credit of TDS should be availed in the year in which income is assessed [ S. 199(3), Rule 37BA(3), Form No. 26AS. ]
S. 153A: Assessment – Search or requisition- No addition can be made in the absence of an incriminating material even if return of income is processed u/s 143(1) of the Act . [ S. 132, 143(1)]
S. 80P : Co-operative societies – Interest received from Co -Operative Bank – Deduction u/s 80P(2)(d) cannot be denied .[ S.80P(2)(d) ]