Workmen- concession on facts and law made by counsel- Test to be applied to find out whether contract labourers are direct employees or not.

S. 276B : Offences and prosecutions – Failure to pay to the credit tax deducted at source -Mere delay in depositing TDS within the time limit prescribed in S. 200 & Rule 30 is an offense sufficient to attract S. 276B. The fact that the TDS has been deposited subsequently does not absolve the offense. The fact that penalty u/s 221 has not been levied is not relevant because there is an admitted delay in depositing TDS. [S. 200, 221, R.30]

S. 254(1) : Appellate Tribunal-Duties-Directions-ITAT should take appropriate steps and expedite hearing in old appeals.

S. 147 : Reassessment –Non disclosure of receipt- Capital gains- Sale of shares- Long term – STT paid -The attempt of further verification would amount to rowing inquiry- Reassessment is bad in law. [S 2(29A, 10(38) ,115JB, .143(1), 148]

S. 143(2) : Assessment-Notice-If a notice is issued but is returned unserved by the postal authorities and thereafter no effort is made to serve another notice before the deadline, it shall be deemed to be a case of “non-service” and the assessment order will have to be quashed. [ [S.292BB, R.127, General Clauses Act, 1897, S. 27 ]

S. 92C : Transfer pricing-Arm’s length price-cannot determine The ALP at nil on an ad-hoc basis-If an authority like the RBI or Commerce Ministry has approved the rate of royalty, it carries persuasive value that the rate is at ALP.

S. 68 : Cash credits-Bogus capital gains from penny stocks-Mere allegation is not sufficient–No action from SBI–Capital gains cannot be assessed as cash credits. [S. 45]

S. 68 : Cash credits–Non–Resident–I Not an ordinary resident -if the assessee is non–resident amount found deposited in a foreign bank is not taxable in India either u/s 68 or u/s 69 of the Act. Period of 182 days to be considered for calculating residential status of a person migrated to Foreign Country [S. 6(6), 69]

S. 56 : Income from other sources–Valuation-start-up-Assessee has the option under Rule 11UA(2) to determine the FMV by either the ‘DCF Method’ or the ‘NAV Method’-The AO has no jurisdiction to tinker with the valuation and to substitute his own value or to reject the valuation. [S. 56(2)(viib),,R.11UA(2)]

S. 43(5) : Speculative transaction-Non–banking financial company- Trading in shares and securities-Loss incurred as a result of trading in shares–cannot be set off against the business of futures and options as it did not constitute profits and gains of a speculative business. Statement by assessee before Assessing Officer that share trading was its sole business during the year – Bond by admission – Interpretation- Intention of legislature to be seen . [S. 73, 143 (3( ]