S. 143(2) : Assessment – Notice –Failure to issue a notice u/s 143(2) renders the assessment order void even if the assessee has participated in the proceedings -Deeming fiction does not operate to save complete absence of notice [ S.292BB ]

S. 92CA: Reference to transfer pricing officer – CBDT’s Instruction No.3/2003 dated 20.05.2003 makes it mandatory for the AO to make a reference to the TPO- The failure to make reference to the TPO renders the Transfer Pricing Adjustments made therein are bad in law though the assessment order is good- The matter should be restored to the file of the AO so that appropriate reference could be made to the TPO.[ S. 92C, 119 ]

S. 68 : Cash credits –Share capital premium- The test of human probabilities cannot be applied to business transactions- The AO cannot reach this conclusion without further investigation and bringing material on record -Reopening is held to be bad in law [ S.147, 148 ]. .

S. 56 : Income from other sources –HUF –Relative – Amounts received by a member from the ‘HUF’ cannot be said to be income of the member exigible to taxation- Revision is held to be not valid [ S.56(2) (vii), 263 ].

S. 50C : Capital gains-Full value of consideration- stamp valuation- Though the 3rd Proviso to S. 50C, which provides a safe harbour of 5%, applies w.e.f. 01.04.2019, it must be interpreted to apply since the insertion of s. 50C (01.04.2003) because it is curative and removes an incongruity and avoids undue hardship to assessees. [ S. 43CA, 45 ]

S. 45 : Capital gains – Penny stocks- Bogus capital gains- 282 times gain in 12 months- The meticulous paper work of routing the transaction through banking channel is futile because the results are altogether beyond human probabilities. [ S.10(38) ]

S. 45 :Capital gains- -Penny stocks- Long term capital gains from penny stocks cannot be treated as bogus if the documentation is in order and no fault is found by the AO- Addition is deleted. [ S.38, 111A ]

S. 37(1): Business expenditure- Capital or revenue – Expenditure on scholarship – Held to be revenue expenditure.

S.14A:Digest – Expenditure incurred for earning exempt income – Guide . R.8D

Interpretation of taxing statutes –Retrospectivity-Power of Courts – Intention of legislature to be seen . [ S.43(5) , 73 ]