S. 68: Cash credits-Foreign Currency Convertible Bonds (FCCB)-Onus of proof-Assessee’s duty is to prove identity of immediate subscriber, not ultimate bondholders source of source-Order of Tribunal deleting the addition is affirmed. [S.260A]

S. 68 : Cash credits –Received through banking channel-Repaid in subsequent year-Failure to charge interest-Order of Tribunal deleting the addition is affirmed.[S. 260A]

S. 68 : Cash credits-Major portion was repaid during the year-Order of Tribunal deleting the addition is affirmed-Additions deleted-Set aside assessment-Additions which were deleted by the CIT(A) in the first round of proceedings and not contested further by the Revenue had attained finality and could not be made again by the Assessing Officer in the set-aside assessment. [S. 254(1), 260A]

S. 50B : Capital gains-Slump sale-Gain from transfer of an undertaking as a going concern is assessable as capital gain and not as business income. [S. 28(i), 28(iv) 45, 260A]

S. 45 : Capital gains-Year of assessability-Contingent consideration-Accrual of income–liable to tax only on the consideration actually received during the year, and not on the entire amount mentioned in the sale deed. [S. 2(47); Transfer of Property Act, 1882, S. 53A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Amendment by Finance Act, 2014 restricting disallowance to 30 per cent held to be prospective-Assessee’s default, the entire expenditure was to be disallowed, and the benefit of the reduced 30 per cent disallowance was not available-Order of Tribunal set aside. [S. 260A]

S. 37(1) : Business expenditure-Quantum of expenditure irrelevant-Renovation of schools and temples-Expenditure incurred out of business exigency to maintain good relations with local villagers for smooth conduct of business is allowable as revenue expenditure, where no capital asset is acquired by the assessee.[S. 260A]

S. 37(1): Business expenditure-Capital or revenue-Compensatory afforestation-Contribution to Compensatory Afforestation Fund (CAF) is revenue expenditure, not capital.c

S. 37(1) : Business expenditure –Business loss-Write-off of a trade advance based on commercial expediency is an allowable deduction. [S. 28(i), 28(iv), 260A]

S. 36(1)(vii) : Bad debt-Provision for bad and doubtful debts-Scheduled bank-Bad debt written off to be reduced by opening balance of provision, not current year’s provision; deduction for current provision also allowable. [S. 36(2)(v) 36(1)(viia)]