S. 250 : Appeal-Commissioner (Appeals)–Has to pass a speaking order after giving a reasonable opportunity of being heard. [S. 144]

S. 194J : Deduction at source-Fees for professional or technical services-Third Party Administrator (TPA), who was responsible for making payment to hospitals for rendering medical services to policy holders under various medical insurance policies issued by several insurers, was liable to deduct tax at source from payments made to hospitals only professional services relating to medical services alone should be liable for deduction of tax at source and not payment towards bed charges, medicines used on patients, transportation charges, implants, consumables etc-Consequence of failure to deduct or pay-Interest – If certificate from an auditor has been obtained from deductee that it had paid taxes in income tax return filed by him, had been brought into effect by Finance Act, 2012 w.e.f. 1-7-2012, therefore, it could not be applied for impugned assessment year ie 2009-10 -Accordingly liable to pay interest only in respect of professional fees and not on reimbursement – Partly allowed. [S. 201(1), 201(IA)]

S. 194I : Deduction at source – Rent – Lease line charges- Liable to deduct the tax as rent and cannot be treated as royalty- Cannot be treated as assessee in default. [S. 9(1)(vi), 194J, 201(1)]

S. 153B : Assessment-Search-Time limit-Seized material relating to assessee was received by Assessing Officer of assessee under section 153C in financial year 2011-12, assessment order passed on 22-3-2013 was well within period of limitation. [S. 132, 153C]

S. 89 : Relief for income-tax – Arrears or advance of salary -Relief is available to qua perquisites. [S. 15, 17(1)(v), R. 21A(6)]

S. 80C : Life insurance premium-Repayment of housing loan-Eligible for deduction on total investment after excluding such amount towards repayment of loan.

S. 69C : Unexplained expenditure-Interest on loan-Since payment of interest was reflected in capital account and same was shown as a part of other withdrawal-Addition cannot be made as unexplained expenditure.

S. 68 : Cash credits- Gifts from father father and sister in law – Need not prove the occasion – Addition cannot be made. [S.56(2)(v)]

S. 56 : Income from other sources-Only two share holders husband and wife–lifting corporate veil- On demises of husband shares devolved on daughter-Unrealistic premium paid by mother for allotment of shares -Benefit only passed on to daughter -Provisions of S. 56(2)(viib) cannot be invoked in the hands of the company when cash or asset is transferred by a mother to her daughter. [S. 56(2)(vi), 56(2)(viib), 56 (2) (x) ]

S. 56 : Income from other sources-Fair market value (FMV) of shares issued at premium- Discount cash flow method (DCF)–Net valuation method–Option to choose the method of valuation is with assesses-Determined Fair Market Value of shares issued at premium on basis of Discount Cash Flow method as per guidelines given by ICAI-Assessing Officer cannot change the method of valuation of shares at premium to Net Asset Value method.(NAV) [ S.56(2)(Viib), R.11UA(2)(b)]