S. 36(1)(iii) : Interest on borrowed capital–Advance to sister concern- Sufficient own interest free funds-Presumption would arise that advances made by assessee to its sister concern were out of interest-free funds – No disallowances can be made.

S. 14A : Disallowance of expenditure-Exempt income–No exempt income during assessment year–No disallowance can be made .[ R.8D.

S. 11 : Property held for charitable purposes-Salary paid to trustee-Exclusively working for trust–Earlier years accepted – Denial of exemption is held to be not valid. [S. 12A, 13(1)(c)]

S. 45: Capital gains- Transfer – Possession was handed over –Subsequent termination of contract by mutual consent and returned back the sale consideration received- Liable to capital gains tax in the year of handing over of possession of property [ S.2(47)( v), Transfer of Property Act,1929, S.53A,Registation Act 1908, 17(1A) ]

S. 271G : Penalty – Documents – International transaction – Transfer pricing -No adjustment was made – Failure to furnish documents -Filed belatedly – Levy of penalty is held to be not justified [S. 92CA, 273B]

S. 271(1)(c) : Penalty-Concealment–Capital gains not shown in the return–Assessment proceedings agreed to pay the tax as he was unaware of tax on sale of property–No malafide intention–Levy of penalty is held to be not justified. [S.45, 148]

S. 271(1)(c) : Penalty – Concealment – Capital loss was not allowed to be carry forward – With drawn in return filed pursuance of notice u/s 148- Every legal claim which was filed and which was not allowed by Revenue did not automatically lead to levy of penalty. [S.147, 148]

S. 271(1)(c) : Penalty–Concealment-Cancellation of registration-Not specifying specific charge whether concealment of income or inaccurate particulars of income-Levy of penalty is held to be not justified-Disallowance of part expenses–Expenditure on foreign tour – Foreign travel expenses of trustees-Credit card expenses–Payment to relatives- Levy of penalty is held to be justified. [S.10(23C)(vi), 11, 12 , 13(1)(c)]

S. 263 : Commissioner-Revision of orders prejudicial to revenue– AO to restrict disallowance to a certain percentage which was less than entire amount of such bogus purchases—Revision is held to be not valid. [S. 153A]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Non-Jurisdictional High Court-Revision is not possible. [S.80IB(10), 115JB]