S. 69 : Unexplained investments-Use of five credit cards-Failure to prove credit entries–Addition is held to be valid. [S. 131, 260A]

S. 68 : Cash credits-Peak credit theory–Hawala transactions-Money laundering can be for oneself-Refusal to divulge details of persons from whom money was distributed–Entire amount to be added as income on basis of peak credit theory-Estimation of commission again at 2% as alleged commission shall be only on the amounts deposited, other than the incremental peak credit adopted for each year-Appeal is dismissed. [S. 69, 69A]

S. 68 : Cash credits-VDIS-Declaration of diamond jewellery-Sale of items after smelting – Weight of gold not disputed-Addition as cash credit is held to be not justified – Assessable as capital gains. [S. 45, VDIS 1997, S. 65]

S. 48 : Capital gains–Computation-Valuation-Valuation adopted for wealth tax is directed to be adopted for the purpose of computing capital gain-Matter remanded. [S. 45]

S. 37(1) : Business expenditure–Legal settlement expenses– Capacity as manging director of the company-Not allowable as business expenditure of the company in his capacity as an advocate against professional income.

S. 37(1) : Business expenditure-Social responsibility-Agreement with State Government to construct houses for poor people affected by floods-Held to be allowable on commercial expediency.

S. 37(1) : Business expenditure-Expenditure on higher education of daughter of Director-Higher education is not related to business of the appellant company–Not allowable as deduction.

S. 37(1) : Business expenditure–Capital or revenue-Insurance premium on purchase of new car-Held to be revenue expenditure.

S. 37(1) : Business expenditure–Commission paid to directors-Allowed in earlier years-Principle of consistency is followed– Appeal of revenue is dismissed.

S. 37(1) : Business expenditure–Construction business– Expenditure incurred subsequent sale of building–Held to be allowable as revenue expenditure. [S. 145]