S. 69A : Income from undisclosed sources-Cold storage-No purchase and sale of products-Deletion of addition is held to be justified.– Cash in hand in books of account was found to be more than actual cash found during search- No addition can be made as cash credits [S.68, 132, 153A, U.P. Regulation of Cold Storage Act, 1976]
S. 69 : Unexplained investments-Use of five credit cards-Failure to prove credit entries–Addition is held to be valid. [S. 131, 260A]
S. 68 : Cash credits-Peak credit theory–Hawala transactions-Money laundering can be for oneself-Refusal to divulge details of persons from whom money was distributed–Entire amount to be added as income on basis of peak credit theory-Estimation of commission again at 2% as alleged commission shall be only on the amounts deposited, other than the incremental peak credit adopted for each year-Appeal is dismissed. [S. 69, 69A]
S. 68 : Cash credits-VDIS-Declaration of diamond jewellery-Sale of items after smelting – Weight of gold not disputed-Addition as cash credit is held to be not justified – Assessable as capital gains. [S. 45, VDIS 1997, S. 65]
S. 48 : Capital gains–Computation-Valuation-Valuation adopted for wealth tax is directed to be adopted for the purpose of computing capital gain-Matter remanded. [S. 45]
S. 37(1) : Business expenditure–Legal settlement expenses– Capacity as manging director of the company-Not allowable as business expenditure of the company in his capacity as an advocate against professional income.
S. 37(1) : Business expenditure-Social responsibility-Agreement with State Government to construct houses for poor people affected by floods-Held to be allowable on commercial expediency.
S. 37(1) : Business expenditure-Expenditure on higher education of daughter of Director-Higher education is not related to business of the appellant company–Not allowable as deduction.
S. 37(1) : Business expenditure–Capital or revenue-Insurance premium on purchase of new car-Held to be revenue expenditure.
S. 37(1) : Business expenditure–Commission paid to directors-Allowed in earlier years-Principle of consistency is followed– Appeal of revenue is dismissed.