Words and Phrases- Meanings of -“irregularity” and “illegality”.

S. 271(1)(c) : Penalty – Concealment – Cash credits- Reasonable cause in omitting rental income- Deletion of penalty is held to be justified .[ S.260A ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Allowability of interest -Assessing officer taking plausible view after proper enquiry — Order is not erroneous and cannot be revised. [ S.57(iii)]

S. 260A : Appeal – High Court -Question of Law — Interpretation of document is question of law —Amount received by assessee under non-compete agreement constitute capital receipt . [ S.4 ]

S. 254(1) : Appellate Tribunal – Duties-Business income or capital gains- Investment in shares- The entire data of each transaction was before the Tribunal and nothing prevented it from looking into all the transactions and recording findings of fact-The Tribunal had failed to perform its duty and therefore, its order was unsustainable. The matter was remitted to the Tribunal for decision afresh. [ S. 28( i), 45 ]

S. 245D : Settlement Commission -Finding of failure by assessee to make true disclosure of undisclosed income — The limited jurisdiction of judicial review while examining the correctness of the order of the Settlement Commission is a well settled principle- Rejection of application is held to be justified. [ S.245C ]

S. 244 :Refunds – Interest on refunds – Time of accrual — Assessment on 22-3-1991 — Interest on refund granted on 9-10-2002 — Interest is not assessable in Assessment Year.

S. 226 : Collection and recovery – Stay- Pendency of appeal- Circular by Central Board Of Direct Taxes that 15 Per Cent. of disputed demand to be deposited for stay — Permits decrease or even increase in percentage of disputed tax demand to be deposited — Requirement reduced to 7.5 Per Cent. On Further condition of security for remaining tax in dispute .

S. 201 : Deduction at source – Failure to deduct or pay- Interest is automatic — Genuine belief that tax was not deductible at source is not relevant – Extra payment to meet costs constitute perquisites- Extra payment to meet costs in Foreign location is not entitled to exemption- Failure to deduct tax and deposit to Govt interest can be Levied- Unlike S.221 , S. 201(1A) is not hedged in by any requirement such as good faith or wilful default. Therefore, for levying interest, mens rea or wilful conduct is wholly irrelevant.[ S. 15, 10(14) , 17 , 192 , 221 ]

S. 158BC : Block assessment -Undisclosed income — Amount surrendered in the course of survey- Merely on the basis of statement in the course of search or survey addition cannot be made, if the assesseee is able to explain the differences- Actual concealment was less than the amount surrendered -Deletion on the basis of explanation is held to be valid . [ S. 132,133A ]