S. 250 : Appeal-Commissioner (Appeals)-Procedure-Recovery of tax-Stay of recovery pending appeals-Department’s inaction on stay application for over six years deprecated-Delay in disposal of stay application-Adjusting refund-Direction to refund excess adjustment and expedite adjudication of pending appeal. [S.143(3), 156, 226, 237, 250(6A); CBDT Instruction No. 1914 dated 21-03-1996; Art. 226]

S. 245D : Settlement Commission-Interim Board for Settlement-Settlement pronounced but order not passed-Cessation of Settlement Commission and formation of Interim Board for Settlement-On oath, Vice-President and member of Settlement Commission confirmed conclusion of hearing and pronouncement of settlement-Interim Board directed to pass order under s. 245D(4) accepting settlement as pronounced. [S. 245C(1), 245D(4), Art. 226]

S. 245D : Settlement Commission-Settlement of cases-Cash credits-Share application-Order of Settlement Commission accepting claim for deduction need not be interfered with-Order of Settlement Commission holding that addition of unsubstantiated share capital under s. 68 would not qualify for deduction under s. 80-IC set aside-Section 115BBE (introduced later) not applicable; assessee entitled to special deduction. [S. 68, 80-IC, 115BBE, 245D(3), 245D(4), Art. 226]

S.37(1): Business expenditure-Construction business-Order of Tribunal deleting the disallowance was affirmed.[S. 260A]

S. 32 : Depreciation-Pipeline installation-Contingent liability
Disallowance justified where liability towards port authorities was contingent and not crystallized-No substantial question of law. [S. 260A]

S.14A : Disallowance of expenditure-Exempt income-No exempt income-No disallowance can be made-Amendment in law will be applicable prospectively from 1-4-2022. [S. 260A, R.8D]

S. 11 : Property held for charitable purposes-Investment-Exemption-Purchase of shares of subsidiary-Non-profit entity-Pursuant to Government policy and TRAI recommendations-No violation Exemption allowable. [S. 11(5), 12, 13(1)(d), 260A, Companies Act, 1956, S. 25]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty
Payments for purchase of licensed software not taxable as royalty. [S. 260A]

S. 254(1) : Appellate Tribunal- Powers- Tribunal remanding matter with cost – Cost of ₹50,000 imposed on small trader held to be harsh and unjustified – Order of Tribunal set aside . [ S. 250(6) ,254(2B), 260A ]

S. 250 : Appeal – Commissioner (Appeals) – Procedure – Time bound disposal of appeals) – Delay in disposal of appeals – Pending for five years – Stipulation of one year period for disposal of appeal in provisions of section 250(6A) – Legislative intent – Inordinate delay would defeat objective of provision -If the appeal was not disposed within this period, the reasons for such delay must be explicitly recorded in the orders, so as to reflect whether the delay was attributable to the assessee or the Department and efforts should be made to decide the appeals maximum within a period of two years – Commissioner (Appeals) directed to decide appeal within three months from date of order of court – The Registry was directed to send a copy of this order to Union of India, the Central Board of Direct Taxes, the Commissioner (Appeals), the Assistant Commissioner and the Principal Commissioner (Central) for necessary compliance. [ S. 246A , 250(6A) , Art. 226.]