S. 80P : Co-operative societies–Mutuality-Nominal member cannot be treated as non-member and so transactions of nominal members cannot be treated as transactions of non-members-Entitle to exemption. [S. 4, 80P(2)].

S. 68 : Cash credits-Share Application amount-Pvt company–Burden is not discharged–Additions held to be justified.

S. 45 : Capital gains—Transfer—Development agreement-Under a development agreement, assessee authorizes developer for construction of apartments, it can be said that assessee has handed over possession of its plot to developer and, thus, the same constitutes transfer and same is taxable as capital gain in year in which agreement was entered into- Reassessment is held to be valid – Matter remanded. [S. 2(47), 54F, 147, 148]

S. 45 : Capital gains-Share of sale consideration of agricultural land-Relinquishment of shares–Family arrangement-Matter remanded to verification of shares of each members and decide accordance with law.

S. 44BB : Mineral oils–Computation-Non-residents-The activity of hiring Ships by the user for transporting men/machines to locations where it was doing exploration/production of mineral oil is directly and closely related with ‘services ‘rendered by plant and machinery and the income arising out of such activities has to be assessed u/s. section 44BB and not u/s. 44B of the Act- Amount of service tax being in nature of statutory payment could not be included in gross receipts for the purpose of computing presumptive income of assessee u/s. 44BB. [S. 44B]

S. 44AD : Civil construction–Computation–Even while passing order u/s 144 the AO cannot go beyond the provision-Addition on account of interest and VAT payable is held to be not valid. [S. 144, 154]

S. 40(a)(ia) : Amounts not deductible-Deduction at source–Payment of Honorarium to directors-Company director is different from director of Co operative Society–Not liable to deduct tax at source- Recipient has offered the honorarium as income-No disallowance can be made .[ S. 2(7), 2(19), 192, 194J(1)(ba), 201]

S. 37(1) : Business expenditure—Purchase cost of programs and film rights—Amortisation of inventories–Consistent method of accounting–AO is not justified in treating programs and film rights as intangible assets and allowing deprecation @ 25%. [S. 32(2)(ii)]

S. 37(1) : Business expenditure-Commission expenses– Documentary evidences to prove genuineness of commission transaction was produced–Statement recorded cannot be used against the asseessee without giving an opportunity of cross examination. [S. 131]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Income arising from rendering of advisory services in a foreign country cannot be taxed as fees for technical service where the assesse does not have a permanent establishment in India- Reimbursement cannot be asseees as income – DTAA-India- USA. [S. 92, Art, 7, 12]