S. 80IC : Special category States -Two manufacturing units both are eligible for deduction- One unit earned profit and other unit loss-AO is justified in setting of negative income of one eligible unit against positive income of other eligible unit. [S.80AB, 80IA(5), 80IC(7)]

S. 68 : Cash credits-Share capital-Loans-Furnished several documentary evidences to prove genuineness of unsecured loans and share capital investment and creditworthiness of parties- Addition cannot be made merely relying upon order of SEBI that some of shareholders of assessee were part of several entities who were linked to money laundering- Assessee is not required to prove source of the source – Deletion of addition by CIT(A) is held to be justified.

S. 54EC : Capital gains-Investment in bonds-Investment made from advance received on sale of capital asset before date of transfer of asset will qualify for exemption. [S. 45]

S. 50C : Capital gains – Full value of consideration – Stamp valuation -Stamp valuation was disputed before the AO- It is the duty of AO to refer the matter to Valuation Officer-The department cannot be allowed a second inning, by sending the matter back to Assessing Officer, enabling it to fill the lacunae and shortcomings and putting the assessee virtually to face a re-trial for no fault of him and to again prove before the Assessing Officer that the sale consideration was the fair market value of the property sold by him. [S. 45]

S. 50C : Capital gains – Full value of consideration-Stamp valuation -An agreement to sell was executed by assessee on 8-2-2010 and Sale deed was executed and registered on 5-6-2012 – In view of proviso to S.50C capital gain was to be computed on basis of stamp duty valuation rate prevailing on date of agreement to sell -Matter was to be remanded to Assessing officer to determine sale value of property on basis of circle rate applicable on property on 8-2-2010, and thereafter compute long-term capital gain assessable in assessment year 2013-14 . [S. 45]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Credit card commission-Payments to banks on account of utilization of credit card facilities would be in nature of bank charge and not in nature of commission- Not liable to deduct tax at source. [S. 194H]

S. 37(1) : Business expenditure–Income -tax -Delay in payment of tax deduction at source- Interest paid under S. 201(1A) is in nature of tax and not allowable as business expenditure. [S. 2(43), 40(ii), 201(IA )]

S. 37(1) : Business expenditure–Penal interest-Service tax- Payment of interest on delayed remittances of services tax is only compensatory in nature and would not be in nature of penalty which would be hit by Explanation to S.37(1).

S. 23 : Income from house property – Annual value -Vacancy allowance- When property had remained let out for a period of 36 months, and thereafter could not be let out and had remained vacant during whole of year under consideration, but had never remained under self-occupation of assessee, ‘annual value’ of said property was to computed at nil. [S. 23(1)(a), 23(1)(c)]

S. 12A : Registration –Trust or institution-Educational trust- Registration could not be denied on ground that assessee should have sought approval under S. 10(23C)(vi) of the Act. Matter remanded to CIT (E), in accordance with law. [S. 10(23C)(iiiad), 10(23C(vi)]