S. 28(i) : Business loss-Trading loss-Purchase and sales through commission agent-Loss held to be non -genuine -Disallowance is held to be justified–CIT(A) can consider the record relating to past assessment, while deciding the appeal. [S. 250, 260A]
S. 12AA : Procedure for registration –Trust or institution-Not carrying on any charitable activity during the relevant period cannot be the ground to cancel registration. [S. 12A]
S. 10(34) : Dividend–Domestic companies-Tax on distribution of profits–Exemption cannot be denied to receiver of dividend, though the payer company had not paid tax on dividend distribution under section 115-O of the Act. [S. (22)(d), 115-O]
S. 13 : Denial of exemption-Trust or institution-Investment restrictions – Exemption cannot be denied unless the revenue proves that amount paid to persons referred in sub -section (3) of section 13 is in excess of what may be reasonably paid for services rendered . [ S.11, 12AA]
S.28(i): Business loss – Main object of the company – Infrastructure- Amended clause to carry on business of shares futures and options- Speculation- Futures and options- Amendment in object clause to carry on business in futures and options- Loss is allowable as business loss [ S. 43(5,73 ]
S.144: Best judgement assessment- Books destroyed due to flood- Expenditure cannot be disallowed arbitrarily – Best judgement should not be made as a best punishment assessment .[ S.37 (1)
S.68: Cash credits – Loans – Confirmation, balance sheet, bank account produced -AO had made no effort to verify the details filed by the assessee- Addition is held to be not justified .
S. 254(1) : Appellate Tribunal- Duties-Failure consider the pleas raised by the assessee–Matter remanded. [S. 68]
S. 147 : Reassessment- Scientific research expenditure- Absence of concluded facts – Writ petition was dismissed. [S. 148, Art. 226]
S. 143(3) : Assessment-Transport business—Estimation of income- Tribunal should have adopted same method in case of assessee’s son-Income from shares- Assessable in the hands of individual-Question of fact -Estimation of income–Could not be telescoped. [S. 5, 145]