S. 45 : Capital gains-Penny Stocks-It is intriguing is that the company had meagre resources and reported consistent losses. The astronomical growth of the value of company’s shares naturally excited the suspicions of the Revenue-The company was even directed to be delisted from the stock exchange-The assessee’s argument that he was denied the right to cross-examine the individuals whose statements led to the inquiry and ultimate disallowance of the long term capital gain claim is not relevant in the wake of findings of fact. [S. 68, 260A]

S. 43B : Deductions on actual payment–Interest–Disallowance made without making enquiries from State Finance corporation was deleted.

S. 36(1)(vii) : Bad debt-Suspension of trading activity on NSEL plat form- Receivable from unrealised contract in commodities-Failure to produce documents to show that transactions undertaken by assessee were delivery based–loss is held to be speculative which cannot be set off against business income- Matter remanded to AO to examine a fresh. [S. 37(1), 43(5)]

S. 32 : Depreciation-Plant and machinery installed by city development authority for water supply project would be eligible for 100 per cent depreciation-Road developed by city development authority for water supply project would be eligible for 10 per cent depreciation. [S. 80IA(4)(1), R. 5]

S. 14A : Disallowance of expenditure-Exempt income-Sufficient interest free funds to meet its investments yielding exempt dividend income- Disallowance is held to be not justified. [R. 8D]

S. 11 : Property held for charitable purposes – Registration granted to assessee cricket association, cancelled earlier, had been restored- Exemption cannot be denied- Amounts received by cricket association under TV subsidy from Board of Cricket Control of India (BCCI) being under a resolution which specifically stated that TV subsidies were towards corpus funds and not under any legal obligation were to be treated as corpus donations-Depreciation on capital asset is to be allowed as application of income. [S. 11(1)(d), 12AA, 32]

S. 250 : Appeal-Commissioner (Appeals)–Delay in filing appeals- Delay was condoned and the CIT(A) was directed to hear the appeal with in three months. [S. 10(23C)(iiiab), 11]

S. 147 : Reassessment–Matter remanded to the AO for redoing the assessment after getting the reply from the assessee–Original order passed was set aside.[S. 148, 153C]

S. 145A : Method of accounting–Valuation–Inclusion of excise duty in closing stock–Tribunal remanded the matter–No substantial question of law. [S. 145, 260A]

S.145 : Method of accounting-Business expenditure–Provision for liquidated damages-Held to be not allowable as negotiation was in progress. [S. 37(1)]