S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits – The tax authorities are not justified in invoking the provisions of S. .40A(3) of the Act without verifying the relevant facts.

S. 11 : Property held for charitable purposes – Charitable trust – Exemption under section 11 – Allowability – Audit Report in Form No. 10B not filed along with return- AO is directed to verify the Form No. 10B filed by the assessee and allow the claim of exemption under section 11. [ Form No 10B ]

S. 119: Central Board of Direct Taxes- Powers of CBDT – Genuine hardship – Reassessment – Fictitious income – CBDT’s refusal to allow re computation despite established fraud – Order quashed and set aside. [S. 10A, 119(2)(b), 139(5), 147, 154,245, 264, 281B, Art. 14, 19(1)(g), 226 , 265, 300A ]

S. 151 : Reassessment – Sanction for issue of notice –Additional ground admitted – Approval from incorrect authority – Notice issued without valid sanction from specified authority – Notice is quashed and set aside. [S. 144C(13) , 147,148, 148A(b), 148A(d), 151(ii), Art. 226]

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –Limitation – COVID extension not applicable –Rectification application is filed beyond period of six months – Income Tax Appellate Tribunal has no jurisdiction to condone delay – Writ petition is dismissed. [Art. 226]

S. 147: Reassessment – With in four years- Change of opinion – No fresh tangible material – Reassessment notice and order disposing the objection is quashed. [S. 35AC, 80G, 143(3), 148, Art. 226]

S. 250 : Appeal – Commissioner (Appeals) – Procedure – Stay of demand – Refund adjustment – Delay in disposal of stay application – Strictures – The delay of six years in deciding the stay application is unjustified and that respondents cannot take advantage of their own delay- The Court directed the revenue to refund the amount within four weeks and suggested that the petitioner apply for an early hearing before CIT(A) – The court further directed CIT(A) to dispose of the appeal before 31 May 2025 and ordered Chief Commissioner of Income -tax to investigate the delay in disposing of the appeal pending since 2018- Writ petition is allowed . [S. 143(1),143(3), 225, 226, 245, 250(6A), Art. 226]

S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice -Income from other sources – Failure to respond to notice – Audit objection after amendment – Factual disputes can not be adjudicated in writ proceedings when an alternative remedy is available- Writ petition is dismissed with liberty to file an appeal. [S. 57, 142(1), 143(3), 148, 148A(b), 148A(d), Art. 226]

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record – Development agreement – Cost Inflation Index – Year of taxability – Tribunal’s common order applied to all co-owners – Miscellaneous application of Revenue is dismissed. [S. 45 , 48 , 254(1)]