S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record–High court admitting department appeal on same issue-Review of order is impermissible. [S. 260A, 271AA, 271(1)(c)]

S. 143(2) : Assessment–Notice-Notice issued to wrong address- Department acknowledging mistake and serving notice by affixture at correct address-Service by affixture not permissible and could not be taken into account-Notice invalid and assessment is void ab initio. [S.143(3), 282, 292BB]

S. 56 : Income from other sources–Valuation of shares-Share premium-Addition on account of excess share premium unjustified. [S.56(2)(viib), R.11UA]

S. 49 : Capital gains-Previous owner-Cost of acquisition– Acquisition of immovable asset by succession of partnership- Subsequent amendment with retrospective effect providing for cost to be taken as cost to previous owner-Law prevailing at the time of filing of return applicable and not provision amended with retrospective effect. [S. 45, 49(iii)(e)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Failure to deduct tax at source-Filing Forms 15G and form no 15H before CIT (A) -Addition is unsustainable-CIT (A) ought to have verified from the banks- AO is directed to delete the addition. [S. 251]

S. 37(1) : Business expenditure-Capital or revenue-Trade mark licence utilisation fees based on turnover-Held to be revenue expenditure.

S. 37(1) : Business expenditure-Compensation for not complying with terms of contract-Civil consequence for not complying with certain terms of contract and had nothing to do with any offence- No violation of law–No disallowances can be made by applying the explanation 1.

S.45: Capital gains- Capital loss- Assignement of loan- Capital asset – Allowable as capital loss. [ S. 2(14)(a) , 2 (47), Wealth tax Act , 1957 S. 2( e ). ]

S. 14A : Disallowance of expenditure – Exempt income – Recording of satisfaction – AO needs to record his non-satisfaction having regard to the sou motu disallowances claimed by the assessee in the context of its accounts. It is only thereafter, the occasion to apply rule 8D of the Rules for apportionment of expenses can arise- AO discussing and not accepting is not sufficient -Order of Tribunal is affirmed . [S.14A(2) , R.8D ]

S. 80P : Co-operative societies -CBDT – Binding precedent – Clarificatory circulars for guidance of Government Officers is not binding on Tribunal- Circulars issued by a Government Department cannot have any primacy over the decision of the jurisdictional High Court-Not entitle to deduction . [ S.80P(2) ,119 ]