S. 74 : Losses – Capital gains – Carry forward – Advance Rulings- Loss determined in pursuance of a return filed for earlier assessment u/s 139 can only be carried forward. – Only party before the authority can be heard – Other parties cannot be heard by Court . [ S. 80 , 139(3), 245N, Art . 226 ]
S. 69A : Unexplained money – Search and seizure-illegal capitation fees –Addition on estimate basis is held to be justified.
S. 68 : Cash credits-Shares at a premium-Genuineness, creditworthiness and identity of investors are established-Addition cannot be made as cash credit.
S. 50C : Capital gains-Full value of consideration- stamp valuation-
Without hearing objections of assessee, that Fair Market Value of capital asset as per ‘Guidance Value’ can not be determined by authorities- Matter remanded to the Assessing Officer. [S. 45, 48 , 50C (2)],
S. 45(4) : Capital gains – Distribution of capital asset – Retirement of partner- Amount received by a partner on her retirement from a partnership firm is not liable to capital gain tax. [S. 45]
S. 45 : Capital gains-Transfer-Joint Development agreement (JDA)-In the absence of registration agreement did not fall under S.53A of the transfer of property Act–Not liable to capital gains tax [S. 2(47)(v) Transfer of Property Act, 1882 S. 53A]
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Timber business-Discontinuation of business for more than 10 years-Showing the creditors- Application of common sense principles-Burden of proof on assessee to show subsistence of liability-Liable to be taxed as profits of business.
S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits – Purchase of jewellery – failure to demonstrate a situation which compelled to make payment in cash- Disallowance is held to be justified.
S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable–Salaries to directors- Preceding year was accepted by revenue–No extraordinary increase in salary-Disallowance is held to be not justified.
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident–Payments made to foreign law firms as consultancy fee which did not have any fixed base in India-Not taxable in India-Not liable to deduct tax at source.[S. 9(1)(i), 195]