S. 5 : Scope of total income -Accrual- Mercantile system of accounting -Not liable to be taxed on notional interest on non-performing assets. [ S. 145 ]

Wealth-tax Act, 1957.
S.7: Valuation of asset —Undisclosed hundis — Valuation under Income–tax Act, 1961 cannot be adopted for purposes of wealth-tax. [ S.2(ea) ]

S. 245D : Settlement Commission – Rejection of application on the basis of subsequent report of commissioner – Allegation of Commissioner is not rebutted – Rejection of application is held to be justified .[ S.245C, 245D(2C) ]

S. 226 : Collection and recovery – Stay of recovery -Garnishee proceedings -When an application for stay was pending before the Commissioner, attachment of bank accounts as per office Memorandum of Central Board of Direct Taxes, 15 Per Cent. of demand recovered from Assessee — Notices was quashed and set aside- However the claim of the assessee, seeking refund of the amounts attached pursuant to such directions, was not justified and could not be granted. [ S.226(3) ]

S. 194H : Deduction at source – Commission or brokerage – Trade discount -Not liable to deduct tax at source . [ S.201(1), 201(IA) ]

S. 194A : Deduction at source – Interest other than interest on securities – Additional compensation paid wrongly mentioned as interest in award -Not liable to deduct tax at source .of Competent Authority.[S. 201(1), 201 (IA),Land Acquisition Act, 1894, S.23(IA) ]

S.147:Reassessment — Based on observations made by Commissioner (Appeals) in case of another person that sum not taxable in that person’s hands —Notice based on same facts in respect of later assessment – Inadequate material for reopening of assessment is set aside .[ S. 132, 143(1), 148 ]

S.147: Reassessment-After the expiry of four years- Method of accounting -All material facts disclosed and examined by assessing Officer – Notice is quashed [ S.145A, 148 ]

S.68:Cash credits — Share capital- Books of account , bank accounts etc were not produced -Dummies or stooges of directors of the assessee company – Failure to offer reasonable explanation — Addition is held to be justified .

S.36(1)(iii): Interest on borrowed capital — New line of business-Amount must have been used for acquisition of asset and asset must have been used – Interest is not allowable.