S. 68 : Cash credits–Share application money–Issue of shares at premium-Journal entries–No inflow of cash-Deletion of addition is held to be justified. [S. 131]

S. 57 : Income from other sources-Deductions–Interest from bank-Bank charges-Failure to establish directly related to earning of interest income from banks. [S. 56, 57(iii)]

S. 56 : Income from other sources–Gift- Difference in valuation in fair market value of property and value adopted by the AO is less than 1%-deletion of addition is held to be justified. [S. 56(2)(viia)]

S. 50C : Capital gains-Full value of consideration-Stamp valuation-When an assessee objects for stamp valuation–AO is bound to make reference to DVO for determination of value of property-Matter remanded. [S.45, 50C(2)]

S. 45 : Capital gains-Land and building -Right in the lease hold land– Building-Lease hold right assessable under normal provisions of the capital gains-Building being depreciable asset capital gain to be computed as short term u/s.50 of the Act. [S. 2(11), 2(29A), 2(29B), 2(42A), 50]

S. 45 : Capital gains-Transfer–Conversion-AOP converted in to a company limited by shares-New company never remained in existence simultaneously–Not liable to capital gain tax. [S.2(47)]

S. 45 : Capital gains-Sale of shares-investigation wing report- Shares were dematerialized and sales had been routed from de-mat account and consideration had been received through banking channels- Addition cannot be made as cash credits. [S. 10(38), 68]

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable–Payment of interest at 15% to HUF-Payment made to related parties-AO has not established that the payment was excessive and unreasonable-Addition is held to be not valid.

S. 37(1) : Business expenditure–Business came to halt–Dormant-Expenditure in respect of rent, professional charges, audit fees, property tax, etc., was incurred by assessee for purpose of maintaining its legal status and for disposing its assets-Held to be allowable.

S. 37(1) : Business expenditure-Motor car and telephone expenses–Failure to maintain log book-Ad-hoc disallowance of 10% of expenses is held to be justified.