S. 14A : Disallowance of expenditure-Exempt income-suo moto disallowance–Further disallowances made by the AO is held to be not justified. [R. 8D(2)(iii)]

S. 12AA : Procedure for registration–Trust or institution- Grants and charging management fees-Medical relief for patients and creating awareness about HIV and AIDS for purpose of its eradication are charitable activities-Entitle to registration. [S. 2(15)]

S. 12AA : Procedure for registration–Trust or institution- Registration cannot be refused on the ground that all initial trustees had taken citizenship of foreign country–Order of CIT(E) rejection of registration and application u/s 80G is set aside. [S. 80G , FEMA, 1999, S.6(5) Indian Trust Act 1882 , S. 10, 60, 73]

S. 271(1)(c) : Penalty -Concealment-Bad debt-Mere claim of bad debts not written off in books of accounts does not call for levy of penalty for furnishing of inaccurate particulars. [S.36(1)(vii)]

S. 271(1)(c) : Penalty -Concealment – Specific charge – Notice did not categorically specify whether penalty was invoked for concealment of income or furnishing inaccurate particulars – Levy of penalty is held to be not justified.

S. 271AAA : Penalty-Search initiated on or after 1st June, 2007– Penalty–Source of investment is explained and taxes not paid -Levy of penalty is held to be justified.[S. 132(4)]

S. 254(1) : Appellate Tribunal- Delay-Failure by assessee to appear before court despite several notices-Appeal liable to be dismissed for non-prosecution. [Limitation Act, 1963, S.3]

S. 194I : Deduction of tax at source—Rent-Internet connectivity charges and specialized line rental — Not liable to deduct tax at source.[S.9(1)(vi), 201(1), 201(1A)]

S. 147 : Reassessment-Share capital-Cash credits-Accommodation entries-No specific evidence–Reassessment is held to be in valid. [S.68, 148]

S. 153C : Assessment-Income of any other person–Search-Satisfaction note recorded by the AO of assessee was not by the AO of person in respect of whom search was conducted–Seized document not relevant to assessment year-Notice is void ab initio and vitiates entire assessment proceedings. [S. 132]