S. 2(22)(e):Deemed dividend-Advance to Shareholder — Deemed dividend can be assessed only in hands of registered shareholder.

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Sale of plant and machinery along with capital WIP, cost incurred on capital WIP was required to be reduced as ‘cost of acquisition’ while arriving at taxable amount of capital gain-Revision is held to be not valid [ S. 2(14),50, 74 ]

S.68: Cash credits-Share capital- Share premium- Share capital and share premium received from investing companies cannot be assessed as cash credits merely because it failed to produce directors of investing companies personally for confirmation, when other evidence such as their address, PAN, confirmation letters etc. was produced . [ S.131 ]

S. 43(5) : Speculative transaction – Derivatives – Losses – Set off from one source against income from other source under same head of income- Loss incurred on account of derivatives would be deemed business loss under proviso to S. 43(5) and not speculation loss, Explanation to S. 73 would not be applicable- Interpretation- Two non jurisdictional High Court taking different view-View favourable to the assessee is followed . [ S.70, 73(4) ]

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Outstanding sundry creditors for several years- Failure to produce correct address, PAN Numbers, or confirmations- Merely because liabilities were shown in books of account and not written back, could not be held to be subsisting liability.[ S.133(6) ]

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident – Royalty – Fes for technical services – Income deemed to accrue or arise in India-Affiliation fee-One time payment to US. company, which did not provide for transfer of technology cannot be assessed as royalty –Not liable to deduct tax at source -No disallowance can be made – DTAA-India- USA [ S.9(1)(vi) ,195 ,Art .12 ]

S.37(1):Business expenditure- Capital or revenue- Depreciation-One time consolidated fee paid to holding company –Held to be capital in nature – Depreciation is allowable . [ S.32(1)(ii) ]

S.37(1): Business expenditure -Capital or revenue- Annual licence fee payable on the basis of turnover achieved is held to be allowable as revenue expenditure .

S. 28(iv) : Business income – Value of any benefit or perquisites – Converted in to money or not -Purchase of shares of a non-related company at a price less than fair value as it was a loss making concern cannot be assessed as benefit or perquisites . [ S.2(24 ) ]

S. 2(22)(e):Deemed dividend-Non -Holding cumulative preference shares with fixed rate of dividend- Advance of loan cannot be assessed as deemed dividend .