S. 28(1): Business loss–Futures and options-Allowable as business loss. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income–Provision is applicable only from the year 2007 -98 onwards.

Prohibition of Benami Property Transactions Act, 1988 S.2(9):
Benami transaction- Advance salary -Allegation of amount was advanced to bring demonetised money in to circulation – Order attaching the bank account was set aside – The authorities have failed to discharge the burden. [ S. 2(5),3,24, 46, PMLA ,2002 , S. 2(u) ]

S. 276C : Offences and prosecutions – Wilful attempt to evade tax –Penalty appeal is admitted by High Court-When the Appeal is admitted on substantial questions of law, there is no justification for the DCIT to threaten the assessee with prosecution- Even if such prosecution is launched, the same shall not proceed till the pendency of the appeal.[ S. 260A, 271(1)(c)]

S. 263 : Commissioner–Revision of orders prejudicial to revenue– Debenture redemption reserve- Original Assessment u/s 143(3) dt. 30-12-2011–Reassessment u/s 143(3) r.w.s 147 dt 28-12-2016–Revision order dt. 26-3-2018-Revision is barred by limitation. [S. 115JB]

S. 147 : Reassessment-Intimation-Bogus share capital-Share premium- Reopening for taxing Bogus share capital: Even in a s. 143(1) intimation, the AO is not entitled to reopen on the ground that the assessee has received “huge share premium” which was not “examined” by the AO. The AO cannot reopen in the absence of tangible material that shows income has escaped assessment. [ S. 68, 143(1)]

S. 147 : Reassessment- After the expiry of four years-Information supplied by investigation wing –Issue of notice to a wrong person-Even in a case where return is accepted without scrutiny, the AO cannot proceed mechanically and on erroneous information supplied to him by investigation wing. If AO acts merely upon information submitted by investigation wing and on total lack of application of mind, the reopening is invalid. [S.143(1), 148]

S. 115JA : Book profit–Debenture Redemption Reserve– Ascertained liability–Deductible for computing book profits-Order of Assessing Officer as per the ratio of jurisdictional High Court-Revision is bad in law on merit and law. [S. 263]

S. 2(ea) : Asset- Cash in hand-Excess of Rs 50000- Not maintained books of account–Includible as asset- Non -productive assets- Amendment is constitutionally valid – Revision is held to be not valid when the Assessing Officer has followed the ratio of jurisdictional Tribunal. [S.25, Art 14]

S. 147 : Reassessment—Notice sent to old address-Duty of Assessing Officer to access changed Permanent Account Number database of assessee—Return filed showing new address- Reassessment is held to be bad in law. [S. 144, 148, R. 127]