S. 271(1)(c) : Penalty–Concealment–Advance received not shown as income–Revised return filed showing advance as income– Deletion of penalty is held to be justified–TDS deducted but no prof was filed–Levy of penalty was held to be not justified.

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Notice referred only one ground-Final order on other grounds– Claim of deduction examined by the AO- CIT was not justified in substituting his view–Revision is held to be bad in law. [S. 80IA]

S. 263 : Commissioner-Revision of orders prejudicial to revenue–Captive power plant–Allocation of profit –Revision is held to be not justified. [S.80I, 260A]

S. 254(2) : Appellate Tribunal- Duty- Rectification of mistake apparent from the record-First miscellaneous application was dismissed– Second miscellaneous application was disposed in chambers without hearing the assessee and without assigning reasons– Held to be unjustified- However considering the peculiar facts of the case the High High Court directed the assessee to pay Rs. 3,25,0000/- (Three crores and twenty five lakhs) as additional tax in respect of on money. [S. 254(1)]

S. 254(1) : Appellate Tribunal–Duties–Tribunal failed to act as last fact finding authority-It failed to discharge its duty and function expected of it by law-Tribunal set aside the matter to AO-Court held that Tribunal could have summoned all records and thereafter should have arrived at categorical conclusion whether First Appellate Authority was right or AO-This having admittedly not been done, court was of firm opinion that Tribunal failed to act as last fact finding authority—It failed to discharge it duties– Matter remanded to Tribunal—DTAA- India–Netherlands. [Art. 5(5)]

S. 250 : Appeal-Commissioner (Appeals)–Addition based on valuation report-There was no reason to refer matter to DVO especially when assessee was not having any income and has not started business during subjected assessment year-Explanation tendered under Rule 46A was found to be satisfactory—Report of DVO was not considered as valid. [S.142A, R.46A]

S. 245D : Settlement of cases—Voluntary offer of income-Commission computed assessee’s aggregate income which was neither objected by assessee nor by Department—Said suo motu offer in no way detracts from character of full and true disclosure- —Subsequently, all issues in applicant’s case was settled—Held, it was not open to Revenues to challenge correctness of facts recorded in order by Settlement Commission before this Court, particularly when it was not even remotely case of Revenue that consent was given/made on a wrong appreciation of law. [S. 245C]

S. 197 : Deduction at source-Certificate for lower rate–Deduction of tax deducted at source and depositing with Government by the payee does not decide the final tax liability of the recipient of the income which would be the subject matter of assessment- Petition is dismissed. [S. 143(3)]

S. 147 : Reassessment-Duty Draw Back and other such incentives were not profits derived from eligible business and accordingly exemption u/s.10BA could not be allowed in respect of Duty Draw Back and other export incentives—Matter was remanded back to AO to decide same afresh in accordance with law, however, leaving it open for both parties to raise all contentions before AO—Matter remanded. [S. 10BA, 148]

S. 147 : Reassessment–Disallowance of 20% expenditure–Bogus dealers- Reassessment is held to be valid. [S. 40A(3), 148]