S. 119: Central Board of Direct Taxes-Circular-Delay in filing audit report-Delay of 76 days-Reasonable cause-Genuine hardship-Force majeure-Circular extending period of limitation-Order of Commissioner rejecting application set aside-Matter remanded to the Commissioner for fresh consideration.[S.12A, 119(2)(b), 139, 143(1), Art. 226, R. 17B, Form 10B]

S. 115JA: Company-Book profit-Voluntary retirement scheme-Advertisement expenditure-Order of Tribunal allowing the claim is affirmed. [S.260A]

S. 80IB(10): Housing projects-undertaking-Joint venture development agreement with landowners-Failure to produce document-Interpretation of taxing statutes-Exemptions-Strict construction-Order of Tribunal set aside. [S.260A]

S. 80G: Donation-Trust-Charitable purpose-Providing low-cost medical facilities to the public-Entitled to exemption. [S. 12A, Art. 226]

S. 73: Losses in speculation business-Shares received by assessee through conversion of partly convertible debentures by allotment from company’s own capital-No purchase and sale activity by assessee-Shares allotted to assessee by company from its own capital-Tribunal was not justified in holding that the loss on account of sale of shares was speculation loss and could not be set off against the other income. [S.28(i),]

S. 68: Cash credits-Unsecured loan-Share capital-Identity, creditworthiness and genuineness of transaction established-Source of source not required to be explained-Finance Act, 2022 (2022) 442 ITR (St) 91-Addition deleted. [S. 260A]

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Capital asset-Held by an assessee-Transfer-Lease premises-Provision is applicable to leasehold right-Appeal of assessee dismissed.[S. 2(14), 260A]

S. 44C: Non-residents-Head office expenditure-Broad and inclusive-No indication that “exclusive expenditure”-expenditure exclusively incurred for branch in India, to be excluded from its ambit-“Attributable to”-Encompasses both shared expenses allocated to India branches and exclusive expenses incurred for India branches-Expense was common expense or exclusively for Indian branch not material so long as expense incurred for business or profession-Allowable as deduction-Expenditure incurred outside India-Authorities have not recorded factual finding-Matters remanded to the Tribunal-“Attributable”-“Exclusive”-“Attributable to”-“Derived from”-Interpretation of taxing statues-Strict interpretation-DTAA-India-United States of America. [S.37(1), Art. 7(3),]

S. 41(1): Profits chargeable to tax-Remission or cessation of trading liability-Sales tax liability treated as a loan under State Government Scheme-Liability assigned to another party at net present value of sum payable after twelve years-Not cessation of liability-Entire liability to pay stood discharged on assignment. [S. 260A]

S.37(1) : Business expenditure-Capital or revenue-Compete fees paid to keep erstwhile partner from doing competing business for seven years. Arrangement to endure for a substantial period, i.e., seven years certain position in the market by keeping the erstwhile partner out-Payment was Capital expenditure.