S. 263 : Commissioner-Revision of orders prejudicial to revenue–Long term capital gain-Information from DIT (Inv)–All relevant documents in relation to LTCG which reflected occurrence of transaction of sale of shares in normal course on platform of stock exchange-Revision is held to be not valid. [S.10(38), 45]
S. 234D : Interest on excess refund–Deduction of tax at source-Refund granted for earlier period was adjusted against outstanding demand of relevant year–No interest is leviable. [S. 234B]
S. 80P : Co-operative societies–Financial assistance to members- Not registered as bank by RBI cannot be categorised as a co -operative bank -Not be hit by provisions of S.80P(4)-Entitle to deduction.-Matter remanded to CIT ( A) [S. 80P(2)(a)(i)Banking Regulation Act , 1949 ,]
S. 80JJAA : Employment of new workmen–Rendering software development services-Regarded as an industrial undertaking engaged in manufacture of article or thing-Eligible for deduction.
S. 37(1) : Business expenditure-Foreign travel expenses-Foreign travel of wives and children of directors-Not allowable as revenue expenditure
S. 37(1) : Business expenditure–Capital or revenue–Royalty-Technical know-how payment to secure technical know how–Held to be revenue expenditure.
S. 36(1)(va) : Any sum received from employees–Failure to deposit employees contribution on account of PF and ESI with concerned department on or before due date prescribed under relevant statutes-Not entitle to deduction.
S. 32 : Depreciation-Good will-Amalgamation-Second year of amalgamation. Claim for depreciation had been allowed in first year of amalgamation, following principle of consistency, assessee’s claim was to be allowed in assessment year in question as well. [S. 43(1), Ex. 7]
S. 28(i) : Business loss-Foreign currency loss on foreign exchange forward contracts–Allowable as business loss.
S. 14A : Disallowance of expenditure-Exempt income-Recording satisfaction-Suo-moto disallowance of certain expenditure–Not justified in recomputing disallowance by the AO-Interest-Own funds were more than investment made to earn exempted dividend income, there could be no disallowance of interest expenses-Only such investments are to be taken into account which yield tax exempt income-Disallowance made under section 14A read with rule 8D cannot be resorted while determining the expenses as mentioned under clause (f) to Explanation 1 to section 115JB. [S. 115JB, R. 8D]