S. 4 : Charge of income-tax-Capital or revenue-Sale of hotel asset Adjusted against capital work-in-progress-Not business income-No violation of Rule 46A-Commissioner (Appeals) is justified in deleting addition. [S. 28(1), R.46A]

80IB (10) : Housing projects- – Slum Rehabilitation Authority (SRA) Projects – CBDT circular – Notification- Claim u/s.80IB (10) would be allowable even the approval was granted before 01/04/2004 and commencement certificate after 01- 4-2004- Circulars and notifications cannot override the provisions of the Act. -Notification No. 1/2011 dated 5-1-2011 restricting the eligibility of section 80IB(10) to SRA project on or after 1-4-2004 and before 31-3-2008 is inconsistent to the proviso to clauses (a) and (b).) [ S.80IB(10)(a) , 80IB(10) (b), 119, 254( 1) ]

250: Appeal – Commissioner (Appeals) – Procedure – Delay in disposal – Faceless Appeal – Central Action Plan – Held that the NFAC would endeavour to implement the said remedial measures in all earnest- Writ petition filed seeking time-bound disposal – Direction issued to dispose of appeal within eight weeks. [S.246A, Art.226]

S.37(1): Business expenditure – Community development expenditure – Street lights on the road , ambulance for meeting medical emergencies , developing public garden – The concept of business is not static and over a period of time , it would include within its fold the care and concern for the society at large which would result in a good will being created in its favour leading to better business – Allowable as business expenditure .

S.147: Reassessment – After the expiry of four years – Change of opinion- Internal audit – Failure to dispose of objections – Reopening of assessment based on change of opinion and internal audit objections is without jurisdiction – Notice is quashed. [S. 147, 144B, Art. 226]

S. 69C : Unexplained expenditure – Sales tax department – Non genuine supplier – Failure to produce bank statements – The order of the Tribunal estimating the income at 12. 5% of alleged bogus purchases is reversed insofar as the purchases from two parties and order of the Assessing Officer making 100% of addition under Section 69C of the Act is affirmed . [ S.133(6), 260A ]

S. 279 : Offences and prosecutions – Sanction – Chief Commissioner – Commissioner -Compounding application filed beyond 36 months from the date of filing of complaint- Rejection of application- CBDT guidelines are not statute -Rejection of compounding application is quashed – Commissioner is directed to consider all facts and circumstances and decide whether such facts make out the case for exercising discretion in favour of compounding the offence. [ S. 279(2) , Art. 226 ]

S. 69C: Unexplained expenditure – Bogus purchases –Information from Sales- Tax Department – Failure to prove genuineness of purchases – Addition is justified –Order of the Appellate Tribunal holding that only profit estimation at 12. 5% can be made is set aside – Order of the Assessing Officer is affirmed . [S. 133(6), 143(3), 144, 147, 148, 260A]

S. 276C : Offences and prosecutions-Wilful attempt to evade tax-Deletion of concealment penalty-Concealment-Acquittal by Trial Court-Presumption of innocence of accused-Appeal against acquittal is dismissed. [S.271(1)(c), 277]

S. 276C : Offences and prosecutions-Wilful attempt to evade tax-Concealment of income-Deletion of penalty-Prosecution is not valid. [S. 271(1)(c),