S. 249 : Appeal – Commissioner (Appeals) – Admitted tax as per return of income -Requirement of paying admitted tax before filing appeal is directory -When defect is removed, earlier defective appeal becomes valid. Accordingly the matter was remanded to CIT(A). [S. 249(4)]

S. 144 : Best judgment assessment-Unaccounted receipts–loose papers – Search –Only net profit to be added as income and not gross receipts. [S. 69A, 145]

S. 115JB : Book profit-Waiver of principal and interest-One time settlement-Disclosed in notes’ to Auditors Report- obligatory on part of Assessing officer to have considered same while determining book profit-Matter remanded – Prior period adjustment- Justified in rejecting claim of deduction in respect of prior period adjustments . [Companies Act, 1956, S. 211(6)]

S. 68 : Cash credits–Share premium-High premium-Transaction cannot be doubted–Addition is held to be not justified.

S. 54F : Capital gains-Investment in a residential house– Deduction cannot be denied only on the ground that bills and vouchers were not produced, when the inspector had visited the site and reported the construction of new house. [S. 45]

S. 50C : Capital gains-Full value of consideration-Stamp valuation – Jantri value/circle rate of land was not higher than sale price agreed by assessee with purchaser, deeming provisions of could not be invoked. [S. 45, 48]

S. 37(1) : Business expenditure-Interest paid to income -tax department on delayed payment of Tax deduction at source is allowable as deduction, it is not personal tax. [S. 40(a)(ii)]

S. 36(1)(iii) : Interest on borrowed capital-Advance to subsidiary- Commercial expediency-Corporate strategy -Disallowance of part of interest is held to be not justified.

S. 14A : Disallowance of expenditure – Exempt income – No disallowance can be made in the absence of any exempt income earned during the year . [R. 8D]

S. 11 : Property held for charitable purposes – Accumulation of income- Application of income – Charitable trust is entitle to accumulate 15% of receipts without considering the expenditure incurred on objects of Trust – when the application of income, is more than receipts of year, excess application of income i.e., expenditure in hands of assessee, can be carried forward to succeeding year. [S. 11(1)(a), 11(2)]