S.56: Income from other sources -Interest received by assessee from deposits given for obtaining bank guarantee was to be assessed as income from other sources. [ S.28(i) ]

ACIT v. Shrey Sharma Guleri Prime Channel Software Communications (P.) Ltd. (2018) 170 ITD 295 (Mum) (Trib.)

S.56: Income from other sources -I nterest from GIDA on cancellation of auction plots under direction of Supreme Court, since interest was emanating from amount paid by assessee and not directly from its business activities, it could not be considered as business income. [ S.28(i) ]

S. 54 : Capital gains – Profit on sale of property used for residence – Basement was used as part and parcel of residential house hence capital gains invested in two residential house properties would be entitle to exemption .[ S.45 ]

S. 43(5) : Speculative transaction -Derivative -Both delivery based transaction and derivative transactions are non-speculative as far as S. 43(5) is concerned and, thus, they will have same treatment as regards application of Explanation to S. 73 of the Act, matter was remanded back to Assessing Officer to bifurcate speculative loss and normal business loss [ S. 43(5) (d), 73 ]

S. 28(i) : Business income -Providing warehousing services along with other facilities such as security service and other services to keep goods safe and under hygienic conditions, said activity systematically undertaken by assessee is assessable as business income and not as income from house property ,wrongly deduction of tax at source would not change character of income to rental income .As regards rejection of books of account and estimation of income was set a side to CIT(A) for re adjudication [ S. 22, 194I ]

S. 12AA : Procedure for registration –Trust or institution- Mainly on ground that it was charging hefty fee from students registration cannot be refused as society is providing free education to needy students and free medical aid to needy patients [ S.2(15) ]

S. 11 : Property held for charitable purposes – Providing knowledge, information, awareness, demonstrations, etc., to members of Fragrance and Flavours industry is charitable purpose hence entitle to exemption [ S.2(15) ]

S. 151 : Reassessment – Sanction for issue of notice -Reassessment proceedings couldn’t be quashed just because AO had obtained prior approval from higher authority [ S. 147, 148 ]

Interpretation of taxing statutes – Income -tax -General principles -Taxing provisions must be construed strictly so that no person who is otherwise not liable to pay tax , be liable to pay tax

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record – Principles of Natural Justice – Judgments relied upon by the ITAT were not confronted to any of the parties – Mistake apparent on record – Ordewr recalled.