S. 143(3) : Assessment–Accrual of income-Year of taxability–Rate of tax-The income was offered in the subsequent year (basis the billing done), tax rate being the same, interest of revenue was not affected, therefore income could not be taxed on accrual basis in the current year. [S. 2(24), 5]

S. 92C : Transfer pricing-Arms’ length price-Failure by authorities to follow procedure prescribed-Matter remanded. [R. 10B]

S. 80IA : Industrial undertaking-Assessee running a cinema production house-Each new project for new film not be considered as reconstruction of business already in existence-Nothing on record to show that there was any transfer of used machinery or plant to a new business-Production of a cinema film would amount to manufacturing or processing of goods-Entitled to deduction.

S. 80HHC : Export business —Assessee’s claim confined to sale to export house —Export house not claiming deduction with regard to export of goods manufactured by assessee — Entitled to deduction.

S. 71 : Set off of loss-One head against income from another – Commercial expediency-Interest paid on borrowed funds which are used for business purpose is an allowable expenditure which can be set off against interest income and the resultant losses can be set off against other head of income. [S. 57(iii)]

S. 69A : Unexplained money-Assessee keeping money in locker and explaining that it was out of savings to perform his daughter’s marriage—Money in locker not taxable. [S. 132]

S. 69 : Income from undisclosed sources-Bogus purchases-Assessee not producing material evidence of parties or intermediaries from whom it made purchases for verification-Addition on account of bogus purchases justified.

S. 69 : Unexplained investments-Income Surrendered during survey proceedings on account of undisclosed debtors is business income and not deemed income-assessee entitled to set off of business loss against such surrendered income. [S. 28(i), 69B, 133A]

S. 68 : Cash credits-Public issue–Global depository receipts-Failure to produce bank statement of investors–Addition cannot be made. [S. 132]

S. 68 : Cash credits-Share Application money-Assessee incorporated in preceding assessment year and receiving share application money in instant assessment year-No unaccounted money can be invested by assesse-investors examined on oath not subjected to cross-examination by assesse-Addition is held to be not justified-Creditor denying the outstanding balance–Addition is held to be justified.