S.145: Method of accounting -Valuation of stock —Tribunal taking only market rate one day later for determining valuation of stock-in-trade is held to be not consistent with law — Tribunal was directed to reconsider valuation of closing stock on the basis of principles established by law.

S. 48 : Capital gains – Computation -Payment of liquidated damages in discharge of liability under earlier agreement to sell is held to be allowable expenditure-The expression “expenditure” used in clause (i) in S 48 should be given the same meaning as used in S.37(1) , except that the expenditure may also be capital in nature. Settlement of a claim and payment made can amount to expenditure [ S. 37(1),45 ]

S. 10 (23C): Educational institution- Kindergarten Class — Though the provisions of right to education Act is not applicable to assessee exemption cannot be denied . [S. 10(23)(vi),Right of Children to Free and Compulsory education Act , 2009 ]

S.2(24)(iv): Business Income —Amount paid by company towards personal expenses of assessee is held to be not taxable.

S.2(14)(iii): Capital asset-Agricultural land- Land entered in revenue records as agricultural land — Agricultural income from land declared and accepted by the revenue – Onus is on department to prove contrary — Profits on sale of land is not assessable to capital gains tax.[ S.45 ]

S. 271AAB:Penalty -Search initiated on or after Ist day of July 2012- Levy of penalty on the basis of loose sheets found on the course of search was held to be not justified as loose sheets represented only projection -Imposition of penalty is directory and not mandatory . [ S. 132(4 ) ]

S. 244A : Refunds – Interest on refunds -Refund on account of excess TDS and advance tax was less than 10 per cent of total tax determined on regular assessment, hence not entitle to interest on refunds .

S. 80IC : Special category States -Hotel – Eco-tourism – Expansion of unit in hotel building constitutes investment in plant and machinery and entitle to deduction .

S.56: Income from other sources -Interest received by assessee from deposits given for obtaining bank guarantee was to be assessed as income from other sources. [ S.28(i) ]

ACIT v. Shrey Sharma Guleri Prime Channel Software Communications (P.) Ltd. (2018) 170 ITD 295 (Mum) (Trib.)

S.56: Income from other sources -I nterest from GIDA on cancellation of auction plots under direction of Supreme Court, since interest was emanating from amount paid by assessee and not directly from its business activities, it could not be considered as business income. [ S.28(i) ]