Gift -tax Act, 1958

S.4:Gifts to include certain transfers — Firm — Induction of new partners to develop the business of the firm —Reallocation of shares will not amount to gift hence not liable to gift tax . [ S. 4(1)(a),26(6)]

S. 263 : Commissioner – Revision of orders prejudicial to revenue –
The AO had examined entire records and there was nothing erroneous in his order, therefore revision order of commissioner was not valid.

S. 254(1) : Appellate Tribunal- Powers- When the Supreme Court stayed the appeals before High Court on issue raised before Tribunal, the Tribunal is justified in not hearing the appeal . [ S.80IB(9)]

S. 158BC : Block assessment – Estimation of undisclosed income was held to be justified — Expenses during Block Period could not be set off against undisclosed income

S.147: Reassessment — Accommodation entries -Non application of mind -Merely on the basis of DIT(Inv.) without verification , reassessment is held to be bad in law [ S.148 ]

S. 143(2) : Assessment – Notice – One return is filed pursuant to notice issued u/s 148 , issue of notice u/s 143(2) is mandatory .[ S. 139,144, 148 ]

S. 80HHC : Export business -Income from job working of machining -Income to be considered as business income.

S. 68:Cash credits — Source of cash deposit was not explained satisfactorily-Addition was held to be justified .

S.68:Cash credits — Burden of proof — Mere confirmation is not sufficient, identity , creditworthiness and genuineness was not proved – Addition was held to be justified .

S. 45(2) : Capital gains – Conversion of a capital asset in to stock-in-trade -Capital gains to be computed on sale up to date of conversion of Land into stock- in-trade and profit on sale of stock in trade to be assessed as business income or loss. Capital gains to be set off against business loss [ S.28(i) ]