S.147: Reassessment-After the expiry of four years- No failure to disclose material facts – Denial of exemption in subsequent year is not aground for reassessment .[ S. 10A, 148 ]

S. 144 : Best judgment assessment – Not responding to notices and summons – Best judgement order is held to be valid – Cancellation of registration and exemption is also held to be valid . [ S.10 (23C) (vi), 12AA, 132, 142(1) 143(2) 153A ]

S. 144 : Best judgment assessment –Accommodation entries – Purchase of fictitious silver items – Unexplained sales – Sales not substantiated by providing identity and credit worthiness of buyers – Rejection of books of account is held to be proper – Cryptic order -Addition made by the AO is affirmed .[ S.132, 145(3) , Voluntary Disclosure Of Income Scheme, 1997 .]

S. 54EC : Capital gains – Investment in bonds -Part consideration in escrow account – Invested in the year of receipt -Entitle to exemption .[ S.45 ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Sale transaction trough dealers on principal -to -principal basis –Dealer could not be considered as commission agent of the assessee- Not liable to deduct tax at source- No disallowances can be made . [ S.194H ]

S.37(1): Business expenditure – Capital or revenue – Replacement of components of existing machinery to maintain efficiency and production capacity- Held to be revenue expenditure .

S. 36(1)(iii) :Interest on borrowed capital – Advance to sister concerns without interest – Having sufficient interest free funds – Disallowance of interest cannot be made .

S.28(i): Business loss- Sale of Fertilizer Bonds received as subsidy from Government in lieu of cash — Allowable as business loss . [ S. 2(14) ]

S. 246A : Appeal – Commissioner (Appeals) – Appealable orders – levy of interest – Appeal is not maintainable unless tax liability is challenged .[ S.220 (2) ]

S. 220 : Collection and recovery – Assessee deemed in default – Assessment order remanded – Levy of interest for period taken for re-computation is valid . [ S.156, 234A, 234B, 234C ]