S. 147 : Reassessment –Notice based on the audit objection is not valid .[ S.148 ]

S. 147 : Reassessment –With in four years-No failure to disclose truly all material facts- Re examination of claim on the basis of breach of condition for claiming deduction in another assessment year is not valid .[ S.80IB(10), 148 ]

S.147: Reassessment-After the expiry of four years- Survey – Return filed in response to notice u/s 148 was accepted by t6he Assessing Officer after disallowance of certain expenses- No new material or information- Reopening is bad in law. [ S.133A, 148 ]

S. 80IA :Industrial undertakings –No requirement that Industrial Park should be operational before stipulated time — Refusal of approval because it was not operational is held to be not valid- The order and notification, withdrawing the earlier notification of 2007 was quashed.

S. 47(xiii) : Capital gains – Transaction not regarded as transfer – Conversion of firm in to company – Allotment of shares to erstwhile partners of the firm after three and half years- Exemption is not entitled . [ S.45, 47A]

S.40(a)(ia):Amounts not deductible – Deduction at source –Commission – Principal to principal – Discount to advertisement agency – Not liable to deduct tax at source –No disallowance can be made . [ S.194H ]

S.36(1)(iii): Interest on borrowed capital- Advances were made out of interest free funds available with assessee -Allowable as deduction .

S. 14A : Disallowance of expenditure – Exempt income – Rule 8D is prospective in operation and is not applicable in assessment years 2004-05, 2005-06 and 2006-07.[ R.8D ]

S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Transfer of technical knowledge, experience, skill, Know-how or process or consists of development and transfer of technical plan or design — Payment to us company for providing management, financial, legal, public relations, treasury and risk management services is not for included services —Payment is not taxable in India – When DTAA is more beneficial than income tax-Act DTAA is applicable-DTAA- India – USA- [S.90, art .12]

S.271(1)(c ): Penalty –Concealment – Inadvertently claimed higher rate of 40% depreciation instead of 25%- Bona fide mistake –Deletion of penalty is held to be justified .[ S.32 ]