S. 2(1A) : Agricultural income-Income from mushroom spawn grown in nursery qualifies as agricultural income-Eligible for exemption-Issue restored to file of AO to determine whether spawn was actually grown by assessee-Reassessment is held to be valid. [S. 10(1)]

S. 271AB : Penalty–in search case-Assessee not person subjected to search-Penalty proceedings against assessee not sustainable. [S. 132(4)]

S. 271AAA : Penalty-Search initiated on or after 1st June, 2007- AO must establish there was undisclosed income-Estimated income not undisclosed income-No specific finding in respect of any specific seized material or undisclosed income detected as a result of search-Penalty is not leviable. [S. 132]

S. 271(1)(c) : Penalty–Concealment-Notice–No specific charge and limb under which penalty proposed–Concealment of income or inaccurate particulars of income–Notice void ab intio. [S. 274]

S. 271(1)(c) : Penalty–Concealment–Loss of equipment-Forfeiture of security deposit–Revenue or capital expenditure-Debatable issue-Full disclosure during the assessment proceedings–Levy of penalty is held to be not valid.

S. 271(1)(c) : Penalty–Concealment-Mere claim–Furnishing inaccurate particulars of income–Levy of penalty is not justified – Delay of 229 days condoned due to health ground. [S. 10(13A), 254(1)]

S. 271(1)(c) : Penalty–Concealment–In the absence of evidence to suggest concealment of income or furnishing of inaccurate particulars, penalty cannot be levied.

S. 271(1)(c) : Penalty–Concealment-Where income was offered in the return and tax paid thereon, penalty could not be levied. [S. 153A, 271AAA]

S. 268A : Appeal–Monetary Limits for filing an appeal–Appeal dismissed for low tax effect–Penalty–limitation-The order passed by the AO is beyond the period of six months, thus barred by limitation. [S. 271(1)(c), 275(1)(a)]

S. 263 : Commissioner-Revision of Orders prejudicial to revenue-Agricultural land claimed to have been purchased by the assessee which is prohibited under Land Reforms Act of State of Rajasthan, not eligible for deduction under section 54B–AO did not consider the crucial basis before allowing deduction-Revision rightly invoked by PCIT. [S. 54B]