S. 147 : Reassessment-After the expiry of four years-Shah Commission’s report- Cash credit -Under-invoicing -Merely on basis of Shah Commission’s Report opining that there was under-invoicing of export price by iron-ore miners and exporters, reassessment could not be initiated when there was nothing to indicate that any particular income had accrued to anyone as a result of price difference-Notice based on report of commission is held to be not valid. [S. 28(1) , 68 ,148]
S. 133A : Power of survey–Unexplained investment-Statement in the course of survey–Documents discovered in the course of survey-Failure to explain the source satisfactorily–Addition is held to be valid. [S. 69, 132, 133A(3)(iii)]
S. 132A : Powers-Requisition of seized assets-Cash seized under guidelines issued by Election Commission-Election commission finding that seizure was not valid-Income-Tax Authorities had no jurisdiction to requisition such cash. [S.132, Art.226]
S. 92C : Transfer pricing–Arm’s length price–Comparables-Companies large and functionally distinct with different areas of development and services-Cannot be benchmarked or equated-Exclusion of three comparables-Held to be valid. [S. 92CA]
S. 80HH : Newly established industrial undertakings-Dipping plant-Manufacture- Manufacturing cloth industrial fabrics, readymade garments sewing threads etc-Entitle to deduction. [S. 2(29B)]
S. 68 : Cash credits-Loan–Onus not discharged–Addition is held to be justified.[S. 69]
S. 45 : Capital gains–Transfer–Allotment letter-Long term-Short term-Assessee in possession of sheds since date of allotment-Assessee Paying Amounts Due Under Agreement-Sale deed executed on 11-1-1996-Transfer of sheds in same year-Assessable as long-term capital gains. [S.2(42A), 2(47)(v)]
S. 43B : Deductions on actual payment- Entry tax is held to be allowable as deduction.
S. 37(1) : Business expenditure-Contribution to death relief fund for employees-Entitled to deductions. [S. 40A(9)]
S. 37(1) : Business expenditure-Compensation paid is held to be not allowable–Payment was held to be not genuine–No question of law. [S. 260A].