S.147: Reassessment-After the expiry of four years- Income from Mushroom Cultivation as Agricultural Income. The ground that the petitioner had failed to disclose all the relevant material was not incorporated in the reasons supplied to the petitioner- Court directed the Counsel to furnish the compilation of judgments on reassessment proceedings to the Commissioner to study the same. Even for reopening the assessment with in four years there are certain jurisdictional requirements that must exist before the power of reassessment is exercised .Strictures passed against the AO for making comments which are highly objectionable and bordering on contempt and for being oblivious to law. [ S. 2(1A), 10(1),148 ]

S. 45:Capital gains- Alleged bogus Long-term capital gains- As neither the statement of Mr Mukhesh Choksi was provided to the assessee nor cross-examination was allowed and it was not even placed on record, the action of the AO in treating the LTCG and STCG as income from other sources was not warranted. [ S. 69 ]

S. 194C : Deduction at source – Contractors -Principal to principal basis – Manufacture or supply of a product according to requirement or specification of a customer by using material which is purchased from a person other than such customer is not liable to deduct tax at source .

S. 80GGC : Contribution – Political parties – Payment was made to newspaper for advertisement contending that newspaper was run by political party, matter remanded for verification whether it was donation to political party .

S. 72 : Carry forward and set off of business losses -Speculation losses-There is no bar in adjustment of unabsorbed business losses from speculation profit of current year, provided speculation losses earlier years has been first adjusted from speculation profit. [ S.71 , 73 ]

S. 43B : Deductions on actual payment – Service tax – Not deposited with Government before due date of filing of return – Disallowance was held to be justified [ S.139(1) ]

S.37(1): Business expenditure -Capital or revenue – Payment of spectrum charges to Department of Telecommunications on quarterly basis is held to be revenue expenditure.[ S.35BB ]

S.37(1): Business expenditure -Distribution of gift articles – Accommodation entries- Bogus purchases – Disallowance was restricted to 30 % of the claim .

S.37(1): Business expenditure- Foreign tour expenses of Research manager of export is held to be allowable as the turnover has increased in succeeding years .

S.37(1): Business expenditure -Legal expenses – Merely because the payment was made cheque and TDS was deducted expenses cannot be allowed , in the absence of any documentary evidence connecting expenditure incurred for business auxiliary service with business of assessee.