S. 226 : Collection and recovery-Stay–Pendency of appeal before Appellate Tribunal-Transfer pricing adjustments–Respondents were directed not to enforce the demand and also not to adjust the refund amounts due and payable during the pendency of appeal before the Tribunal–Tribunal is directed to complete the hearing as expeditiously as possible and under no circumstances beyond 31st March, 2019. [S. 220, 254(1), Art. 226]

S. 115BBDA : Dividend received from domestic companies, tax on- Constitutionally valid and not arbitrary – Petition was dismissed. [S.10(34), 115BA, 115-0, Art. 14]

S. 56 : Income from other sources-Fair market value of shares- Direct Cash Flow (DCF) method-Valuation done by Chartered Accountant is rejected–Failure to prove projection / estimation was done on scientific method-Matter was to be restored to AO who would scrutinize valuation report and, adopt own valuation if not satisfied with explanation of assessee; however, basis of valuation would be DCF method and he could not change method of valuation which was opted by assessee. [S.56(2)(viib), 11UA(b)]

S. 56 : Income from other sources-Compulsory cumulative convertible Preference Shares (CCCPS) at huge premium-Voting right on various resolutions–Matter restored to CIT(A) to consider all terms of issue of preference shares and decide a fresh in terms of rule 11UA. [S. 56(2)(viib), R.11UA(2)(a)]

S. 54F : Capital gains-Investment in a residential house- purchasing land before period of one year prior to sale of another capital asset- Not entitle to exemption. [S. 45]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability–Difference between creditors recorded in his books vis-a-vis balance in books of creditors-Sales and purchases not doubted–Addition is held to be not justified.

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits -Purchase of jaggery from farmers- Disallowance is held to be not justified. [R. 6DD]

S. 40(b)(v) : Amounts not deductible–Partner–Remuneration– Book profit-Despite quantum not specified in partnership deed remuneration paid to partners is held to be allowable.

S. 37(1) : Business expenditure–Business commenced-Expansion of existing business-Preoperative expenses such as salaries and wages, PF and ESI contribution, travelling expenses, and like other general administrative expenses etc is held to be allowable. [S. 35D(1)(ii)]

S. 37(1) : Business expenditure–Capital or revenue-ROC fees paid for increase in authorised capital for issuance of bonus shares was revenue expenditure-Matter remanded for verification.