S. 4 : Charge of income-tax–Capital or revenue-compensation received on closure / termination of business activity resulting in loss of source of income, impairing its profit making structure or sterilization of profit making apparatus is capital receipts. [S.28(i)]

S. 272A : Penalty – Failure to answer questions – Sign statements – Furnish information -Business of production of potable country liquor/Alcohol -Belated TDS returns-TDS was deposited on time- Belated return was due to reasonable cause and revenue has not suffered any loss- Levy of penalty is held to be not justified. [S. 206, 273B, 276BB]

S. 271C : Penalty-Failure to deduct at source-Bonafide belief-There cannot be a case of automatic levy of penalty-The circular has come much after the expiry of the financial year ending on 31-3-2009, the assessee was clearly under a bona fide belief that no TDS is liable to be deducted- Penalty was deleted. [S. 194J]

S. 271AAA : Penalty – Search initiated on or after 1st June, 2007 – As there was search proceedings against the assesee initiation and levy of penalty is held to be in valid. [S. 132, 153C]

S. 250 : Appeal-Commissioner (Appeals)–Has to pass a speaking order after giving a reasonable opportunity of being heard. [S. 144]

S. 194J : Deduction at source-Fees for professional or technical services-Third Party Administrator (TPA), who was responsible for making payment to hospitals for rendering medical services to policy holders under various medical insurance policies issued by several insurers, was liable to deduct tax at source from payments made to hospitals only professional services relating to medical services alone should be liable for deduction of tax at source and not payment towards bed charges, medicines used on patients, transportation charges, implants, consumables etc-Consequence of failure to deduct or pay-Interest – If certificate from an auditor has been obtained from deductee that it had paid taxes in income tax return filed by him, had been brought into effect by Finance Act, 2012 w.e.f. 1-7-2012, therefore, it could not be applied for impugned assessment year ie 2009-10 -Accordingly liable to pay interest only in respect of professional fees and not on reimbursement – Partly allowed. [S. 201(1), 201(IA)]

S. 194I : Deduction at source – Rent – Lease line charges- Liable to deduct the tax as rent and cannot be treated as royalty- Cannot be treated as assessee in default. [S. 9(1)(vi), 194J, 201(1)]

S. 153B : Assessment-Search-Time limit-Seized material relating to assessee was received by Assessing Officer of assessee under section 153C in financial year 2011-12, assessment order passed on 22-3-2013 was well within period of limitation. [S. 132, 153C]

S. 89 : Relief for income-tax – Arrears or advance of salary -Relief is available to qua perquisites. [S. 15, 17(1)(v), R. 21A(6)]

S. 80C : Life insurance premium-Repayment of housing loan-Eligible for deduction on total investment after excluding such amount towards repayment of loan.