S. 69C : Unexplained expenditure -Capitalisation fee – Admission in medical college – Scribbling made on the back side of two pages which does not reveal that assessee had made any payment – Failure to give an opportunity of cross examination of Dean – Addition was deleted . [ S. 132 ]

S. 147: Reassessment – After the expiry of four years- Non -Resident – Swiss account funds of non -resident – Credits in HSBC (Geneva) accounts originated outside Indian Territories. – Income deemed to accrue or arise in India – No business connection – Limitation – Extended period of 16 years is not applicable to non -Residents- Reassessment notice and order is held to be bad in law and quashed – DTAA -India -UK -French . [ S.6(1), 6(6), 9(1)(i) , 69,139(1) , 148 , 149(1), (149(1)( c), Art, 28 ]

.37(1): Business expenditure – Sales and business promotion expenses -Gifting freebies to dealers and stockists – Performance in meeting sales targets – Allowable as a deduction – Circular No 5 of 2012 dt. 18 -2012 prohibits the benefit of freebies directly or indirectly to medical practioners and their professional associations and not to dealers and stockists .

S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice – Shell company – Natural justice – Reply was filed in response to notice under the old regime – Order passed without considering the objection was set aside – Directed to pass the order considering the objections filed by the assessee. [S.143(2), 148, 148A(b), 148A(d), Art , 226 ]

S. 271(1)(c) : Penalty-Concealment-Addition was deleted-Cancellation of penalty is valid. [Art. 136]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Loss on account of sale of shares-Shares were undervalued-Revision is justified. [S. 263(3)]