S. 68:Cash credits- Share capital- Mere submission of name & address, Balance Sheet & bank statement of the subscribers is not sufficient to discharge the onus. The assessee has to justify the allotment of shares to outsiders at exorbitant premium with cogent material and not bald statements. Addition is held to be justified. [S.56(2)(viib) , 2(24)(xvi) ]
S.40(a)(ia):Amounts not deductible – Deduction at source- Recipient has filed belated return hence conditions not satisfied – Liable to deduct tax at source-Liable to pay tax with interest [ S.201(1)]
S. 10 (23C): Educational institution- Merely because surplus profit earned in educational activities did not automatically presuppose a business activity that invalidated the exemption as long as surplus was utilised for charitable purposes . [ S.2(15), 10(23C)(via),11(4A) ]
S.2(22)(e ): Deemed dividend- Loan to shareholder — Finding that loan was not trading transaction therefore assessable as deemed dividend .
S. 92C : Transfer pricing – Arm’s length price –It would be impossible to find comparable with all similarities including the similarity of turnover- A functionally similar company cannot be excluded as comparable only on ground that company had a higher turnover .
S. 80IB(10) : Housing projects- Project containing commercial units to the extent permitted by rules and regulation is allowable as deduction. Tribunal is justified in allowing partial deduction only in respect of building completed.
S. 80IB(10) : Housing projects -Commencement of construction before 1-10-1998- If either the development or the construction starts before the specified date, the benefit of deduction is not allowable . [ S.80IA(5)]
S. 68 : Cash credits -Share application – The assessees has filed balance sheet confirmation etc, addition cannot be made merely on suspicion , if AO has any doubt he should make enquiry with lenders bank etc .
S. 37 (1) : Business expenditure – Provision for deficiency in service – Ascertained liability – Profits chargeable to tax – Remission or cessation -Addition cannot be made. [ S.145 ]
S. 2(22)(e):Deemed dividend- Trade discount – Agents’ deposit – Regular business transactions cannot be assessed as deemed dividend .