S. 80IC : Special category States -An assessee who avails of deduction for a period of 5 years @ 100% of profits and gains is entitled to deduction on ‘substantial expansion’ for remaining 5 Assessment Years @ 25% (or 30% where the assessee is a company) and not @ 100% [.80IA ]

S. 68: Cash credits- Bogus share capital- A private limited co cannot say that it has no clue about the subscribers to its share capital. The genuineness of the transaction has to be determined by ground realities and not by documents like PAN cards, board resolutions, share certificates etc. Even shell cos have these documents. If the assessee is not able to produce the brains behind these companies and the documents with respect to their financials, the transaction cannot be regarded as genuine- Reassessment is held to be valid and addition is confirmed on merit.[ S.147, 148, 151 ]

S. 68: Cash credits- Share capital- If no cash is involved in the transaction of allotment of shares and it is a case of book adjustment, provisions of s. 68 treating it as unexplained cash credit are not attracted. Even if it were to be assumed that the subscribers to the increased share capital are not genuine, the amount of share capital would in no circumstances be regard as undisclosed income of the company

S. 40(a)(ii) : Amounts not deductible – Rates or tax – Education cess is not part of tax. Accordingly, the same is allowable as a deduction and disallowance cannot be made. CBDT Circular referred.

S. 37(1):Business expenditure-Capital or revenue- payment of a one-time fee to continue the business of mining constitutes revenue expenditure.

S. 35B :Export markets development allowance –Agent- Expenditure incurred in the promotion of the sale outside India – Not discharged the onus of establishing that the expenditure was wholly or exclusively incurred for the purposes mentioned in S.35-B(1)(b)(iv) of the Act- Not entitle to weighted deduction . [ S.35B(1)(b) (iv) ]

S. 35B :Export markets development allowance –Agent- Expenditure incurred in the promotion of the sale outside India – Not discharged the onus of establishing that the expenditure was wholly or exclusively incurred for the purposes mentioned in S.35-B(1)(b)(iv) of the Act- Not entitle to weighted deduction . [ S.35B(1)(b) (iv) ]

S.28(1):Business income- Capital gains- sale of shares- Short period of holding shows that intention of assessee is to earn profit at earliest possible occasion-Assessee is moving as per stock market trend and selling shares at first available opportunity. This type of activity of sale and purchase is rightly termed, not as investment, but as trading [ S.45 ]

S. 23 : Income from house property – Annual value -vacancy allowance-The words ‘property is let’ does not mean ‘property actually let out’. If property is held with an intention to let out in the relevant year coupled with efforts made for letting it out, it could be said that such a property is a let out property and the same would fall within the purview of S. 23 (1)(c) and be eligible for vacancy allowance. A reasonable approach should be taken on the assesse’s attempts to let out and infallible proof should not be demanded [ S.22, 23(1) (c )]

S. 14A : Disallowance of expenditure – Exempt income -The expression “does not form part of the total income” in S. 14A envisages that there should be an actual receipt of the income, which is not includible in the total income- If no exempt income is received or receivable during the relevant previous year, no disallowance can be made [ R.8D ]