DIRECT TAX

1. Value of stamps sold by commission agent wasn’t includible in his turnover to ascertain liabililty for tax audit.
IT: Where assessee, a licensed vendor for sale of stamps on commission was under a bona fide belief that he was not liable for audit of accounts under section 44AB as per circular No. 452 and ICAI guidelines, penalty under section 271B was not to be imposed.

2. Co-operative society providing credit facilities only to its members was entitled to relief under sec. 80P.
IT : Assessee, a credit co-operative society, engaged in providing credit facilities to its members only, was entitled to claim deduction under section 80P(2)(a)(i).

3. Issuance of reassessment notice in name of non-existent firm was void even when AO was unaware of its dissolution.
IT: Where partnership firm was converted into company, issuance of notice under section 148 to partnership firm was void irrespective of fact whether Assessing Officer was aware or not with regard to dissolution of firm.

4. ITAT rightly deleted penalty as assessee had paid full tax along with interest for income disclosed in search: HC.
IT : Where assessee had not paid full amount of tax at time of filing block return and paid balance amount of tax along with interest, assessee could not be penalised under section 158BFA(2).

5. Appeal filed by revenue having tax effect of less than 4 lakhs isn't maintainable before ITAT.
IT: Appeal filed by revenue is not maintainable where tax effect of appeal is less than Rs. 4 lakhs.

6. Commission paid by 'Premier Breweries' to its agents disallowed as they hadn't done any liaisoning work.
IT : Where assessee, a manufacturer of alcoholic beverages, claimed deduction of commission paid to agents engaged in coordinating with State Corporation for continuous supply of liquor, since Managing Director of State Corporation had made a categorical statement that commission agent had not done any liaisioning work, assessee's claim for deduction was to be rejected.

7. Order of AO wasn't prejudicial to revenue once inquiry was held demonstrating how view taken by him was correct.
IT: Where for unaccounted expenditure revealed in search, assessee prepared cash flow statement and explained source and application of income to which Assessing Officer concurred, order of Assessing Officer could not be revised.

8. CIT couldn't withdraw registration of trust without pointing out any commercial activity carried out by trust.
IT: Where Commissioner withdrew registration under section 12AA(3) on ground that assessee was in receipt of income arising out of activity in nature of trade, commerce or business but he had not pointed out any specific instance of any activity, income or expenditure being non-genuine order of Commissioner did not conform to specific conditions laid down in section 12AA(3).

9. No exclusion of super profit making Co. from comparable list if material differences can be eliminated by adjustments.
IT/ILT : The mere fact that an entity makes high/extremely high profits/losses does not, ipso facto, lead to its exclusion from the list of comparables for the purposes of determination of ALP. In such circumstances, an enquiry under Rule 10B(3) ought to be carried out, to determine as to whether the material differences between the assessee and the said entity can be eliminated. Unless such differences cannot be eliminated, the entity should be included as a comparable.