S.147: Reassessment-After the expiry of four years- Notice is not mentioning of failure to disclose material facts -Reassessment is not valid [ S.148,151 ]

S.147: Reassessment – After the expiry of four years -Income forming subject matter of appeal —Reassessment is held to be not valid [ S.148 ,151 ]

Constitution of India – Jurisdiction
Art.226:High Court — Territorial Jurisdiction of High Court — Company having Registered Office in Delhi —Notice to Non-Executive Chairman in Chennai — Chennai High Court has Jurisdiction to consider Writ petition by non-executive Chairman [ S.2(35) , 276B ,278AA]

S. 276B : Offences and prosecutions – Failure to pay to the credit tax deducted at source -Non-Executive Chairman is not involved In Day-To-Day affairs of company — Managing Director admitting Liability and entering into negotiations with revenue — Prosecution of Non-Executive Chairman is held to be not valid . [ S.2(35) ,278AA]

S. 80G : Donation – Trust was created for the upkeep and maintenance of a museum and also the activity of running the school- Direction of Tribunal to grant the approval was held to be justified.[ S.80G(5) ]

S.56:Income from other sources — Business income —Setting up business — Interest on fixed deposits – Assessable as income from other sources [ S.28(i) ]

S.37(1): Business expenditure — Expenditure incurred on Freebies provided to medical consultants, consultancy or honorarium fee, registration, sponsorship and training — Matter remanded to Tribunal to reconsider the issue .[ S.254(1)

S.28(va): Business income- Non-Resident —Non-compete fee — Negative covenant for three years only and not permanently- Receipts is taxable as business income but not taxable in India in absence of any permanent establishment of non-Resident In India – There was no transfer of any capital asset hence not liable to capital gains tax – DTAA- India -United Kingdom [ S.45 2(47) Art. 7 (1) ]

S. 32 : Depreciation – Goodwill- Intangible asset-Goodwill will fall under the expression ‘or any other business or commercial rights of similar nature’ hence depreciation is available on genuine goodwill. Whether there is transfer of goodwill and valuation done by the assessee is erroneous has to be decided by division Bench , accordingly the matter is sent back to division Bench .

S.254(1):Appellate Tribunal- Tribunal has no power of enhancement- Tribunal cannot take back benefits granted to assessee by Assessing Officer . Therefore, direction of Tribunal to Assessing Officer to determine depreciation or business loss of each year and carry forward lower of two for adjustment under section 115JA, which would result in enhancement of assessment, was not justified. [ S.115JA]