S. 40(a)(ia): Amounts not deductible – Deduction at source – Second proviso to S. 40(a)(ia) of the Act inserted by Finance Act, 2012 is clarificatory and retrospective in nature – No disallowance can be made where the recipient of the amount has already discharged his tax liability therein .[ S. 40(a) ,139(1) ]

S. 12A : Registration –Trust or institution- Assessment was not pending before AO but before the Tribunal -Granting of registration for the AY. 2011-12 is held to be not valid. [ S. 11, 12 ]

S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Monies received towards arbitration costs and legal costs – Amount payable as per decree – Not liable to deduct tax at source -DTAA-India – Switzerland [S.190 , Art .22 Arbitration and Conciliation Act, 1996 S.48 ]

S.2(14)(iii): Capital asset-Agricultural land- Capital gains- Agricultural lands and beyond 8 k.m., from the notified cities – Revenue records showing as agricultural lands- Department to prove that the entries in the revenue records and the patta were false or bogus- Entitle to exemption .[ S.45 ]

S. 147 : Reassessment –Bogus share capital- Parent company – Indian subsidiaries- Information from investigation wing – Credit worthiness of the investing company- Reassessment notice is held to be valid .[ S.68 , 148 ]

S. 143(3): Assessment – E-Assessment – Post demonetization-The AO should at least call for an explanation in writing before proceeding to conclude that the amount collected by the assessee was unusual- The AO could have come to a definite conclusion on facts after fully understanding the nature of business of the assessee-Order of AO is set aside and directed the AO is directed to dispose the matter with in sixty days of receipt of the order . [S.69A ,115BBE.]

S. 92C : Transfer pricing – (i) If the “arms length‟ principle is satisfied qua the relevant transaction between the assessee and its Indian subsidiary, no further profits can be attributed to the assessee in India even if it was to be held that the latter had a PE in India (ii) If the subsidiary has subsequently entered into an “APA‟ with the CBDT & the FAR analysis and overall functions remain unchanged, the “APA‟ would have a bearing on the ALP of the earlier years.

S. 45: Capital gains- Long term capital loss – A reduction of capital results in an “extinguishment of rights” in the shares and constitutes a “transfer‟- The fact that the percentage of shareholding remains unchanged even after the reduction is irrelevant. The loss arising from the cancellation of shares is entitled to indexation and is allowable as a long-term capital loss.[ S. 2(22)(d),2(47),10(34) ,48,49(2),115A, 1150 ]

S. 43B : Certain deductions on actual payment – The credit of Excise Duty earned under MODVAT scheme is not sum payable by the assessee by way of tax, duty, cess – unutilised credit under MODVAT scheme does not qualify for deduction – Sales tax paid by the appellant was debited to a separate account titled ‘Sales Tax recoverable account’ and is liable for disallowance .[S. 145 ]

S. 69C : Unexplained expenditure – Bogus purchases – Accommodation entries – Restricting the disallowances at 5% of alleged bogus purchases is held to be justified – Entire purchases cannot be disallowed . [ S. 37(1),144 ]