S. 226 : Collection and recovery-Assessee deemed in default-Stay –Strictures-Recovery proceedings were stayed-Revenue was directed to re deposit the amount with drawn from the Bank– Order seta side-Court also expressed dismay at the conduct of the Officers of the Revenue-The desire to collect more revenue cannot be at the expense of Rule of law-Revenue to pay cost of Rs.50,000 to the Petitioner for the unnecessary harassment. [S. 10(23FB) 10(35), 220(6), 226(3), 245, 281B, Art .226]

S. 201 : Deduction at source-Failure to deduct or pay–limitation- Cross objection – Non -residents–Additional grounds-Royalty–Fee for technical services -In cases of payments made to non-residents, an order passed after one year from the end of the financial year in which the proceedings were initiated is void ab initio and liable to be quashed. [S. 9(1)(vi), 9(1)(vii), 201(1), 201(3), 201(4), 253(1) 254(1)].

S. 147 : Reassessment–Change of opinion–High court is directed to decide whether requirement of S.148 is satisfied or not. [S.143(1), 143(3)]

S. 142(2C) : Inquiry before assessment–Special audit–AO is entitle to suo motu extend the time without an application by the assessee- The amendment by FA 2008 was intended to remove an ambiguity and is clarificatory in nature- There exists a presumption of retrospective application in regard to amendments which are of a procedural nature- Orders of High Courts set aside and matter remanded to Appellate Tribunal to decide on merits. [S. 142, 153A, 153B]

S. 68 : Cash credits-Share Capital-identity, creditworthiness and genuineness of the share applicants by producing the PAN details, bank account statements, audited financial statements and Income Tax acknowledgments and the investors have shown the source of source & personally appeared before the AO in response to s. 131 summons- Addition cannot be made as cash credits. [S. 131, 133(6)]

S. 68 : Cash credits-Bogus share premium-Accomodation entries– Balance sheet and confirmation was filed-It is the prerogative of the Board of Directors to decide the premium and it is the wisdom of the shareholder whether they want to subscribe to shares at such a premium or not- Addition cannot be made on presmptions. [S. 69C, 131, 131(IA), 250(4)]

S. 43D : Public financial institutions–Method of accounting-Accurval of income–Real income theory-Interest on NPAs-Even though the special provision in S. 43D for taxing interest income on NPAs on receipt basis does not apply to NBFCs, it does not mean that NBFCs have to offer interest on bad or doubtful debts to tax on accrual basis. Such interest is not taxable on the real income theory. [S. 145]

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Payment gateway charges paid to a bank for swiping credit cards are in the nature of fees for banking services and not “commission” or “brokerage”-Not liable to deduct tax at source- No disallowances can be made.[S.194H, 195(3)]

S. 14A : Disallowance of expenditure-Exempt income–Not recorded the satisfaction for not accepting the disallowance- Deletion of addition is held to be justified. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-In the absence of any exempt income- No disallowance can be made. [R. 8D]