S. 71 : Set off of loss-One head against income from another-Constitutional validity and retrospectivity-Set off of loss from one head against income from another Deduction and vested entitlement to set off actual amount of loss-Income from house property to Rs. 2 lakhs for particular assessment year with effect from 1-4-2018-Insertion of sub-section (3A) in section 71 in terms of section 31 d amendment not violative of article 14-Income-tax Act, 1961, s. 71(3A)-Finance Act, 2017, S 31[1], Finance Act, 2017,(2017) 393 ITR (St.) 1) [S. 22,56(2), 71(3A), Art.13, 14, 19(1)(g), 226, 265]

S. 69C : Unexplained expenditure-Accommodation entries-Grey market-Trading of electronic items-Information from sales tax department-Summons to parties returned unserved-Tribunal restricting the disallowance to three percent of purchases-Order of Assessing Officer disallowing the peak of purchases-CIT(A) and Tribunal estimated the percentage of alleged bogus purchases-On appeal by revenue-Court held that reassessment Notice valid-Failure to quote legal provision or quoting not to vitiate an action if power and authority were to be otherwise found in statute-Order under section 143(3), read with section 147 of the Act passed by the Assessing Officer was restored. [S. 37(1), 133(6),143(1)), 147, 148, 260A]

S. 69C : Unexplained expenditure-Bogus purchases-Addition of 10 per cent. on account of bogus purchases-Order of Tribunal affirmed.[S.260A]

S. 68 : Cash credits-Demonetisation-Small borrowers-Statement not considered-Principle of natural justice-Matter remanded to Assessing Officer for fresh consideration-Taxation Laws (Second Amendment) Bill, 2016 (2016) 389 ITR (St.) 14, 21) [S. 133(6), 143(3), Art. 226]

S. 68 : Cash credits-Unexplained investment-Ex parte assessment order-Concurrent findings by authorities below that assessee failed to prove source of deposits-No substantial question of law arose. [S.69,133(6), 143(3), 144, 260A]

S. 68 : Cash credits-Unexplained investment-Ex parte assessment order-Concurrent findings by authorities below that assessee failed to prove source of deposits-High Court held no substantial question of law arose-SLP of asseessee dismissed. [S. 69, 133(6), 143(3), 144, 260A]

S.37(1): Business expenditure-Commencement-Set up of business-Operating expenses, financial expenses-Depreciation-Commenced several activities for which incorporated-Expenditure and depreciation allowable-SLP of revenue dismissed. [S.28(i), 32, Art. 136]

S. 32 : Depreciation-Goodwill-Amalgamation-Difference between purchase consideration and net assets acquired on demerger-Claim for depreciation not disputed in year immediately following demerger Disallowance of depreciation in later years relying solely on fifth proviso to section 32(1)-Proviso applicable only in year following demerger-Depreciation claim for subsequent years not barred-Matter remanded to Tribunal.[S. 43(6)(c)]

S. 11 : Property held for charitable purposes-Educational trust-Trust not registered under section 12AA at time of filing return-Registration obtained subsequently after assessment-Rectification application under section 154 rejected-Assessee cannot be denied legitimate deductions otherwise available as regular assessee-Purpose of assessment to recover legitimate tax and not unjust tax Assessing Officer not expected to act mechanically to fasten unjust tax liability-Matter remitted to Assessing Officer for fresh assessment order. [S.12, 12A, 12AA, 139, 143(1), 154]

S. 10A : Free trade zone-Export-Hundred per cent. export oriented unit-Transfer of stocks from assessee’s eligible unit to foreign unit-Finding by Tribunal that transferred stock sold by foreign unit and which constituted more than 75 per cent. of total sales-Entitled to exemption-Order of Tribunal affirmed. [S.10B, 260A]