S. 4: Charge of income tax – Capital or revenue- Business income-Receipts from Construction company – Netting of receipts and payments- Receipts from the Construction Company being intrinsically connected with construction of assessee’s plant, would be considered as a capital receipt and not income of assessee from any independent source-Amounts received by the assessee would go to reduction of cost of construction. [S, 28(i), 56, 145]

S.4 :Charge of income-tax – Mutuality – Receipts by Co-operative society form its members i.e. Non-occupancy charges, transfer charges common amenity fund charges and other charges, are exempt from income-tax Act based on the principle of mutuality [S. 2(24)(vii) ; Maharashtra Co-operative Societies Act, 1960 S. 79A ]

S. 4: Charge of income-tax – Legislative power of retrospective amendment – Legislature cannot by way of introducing an amendment overturn a judicial pronouncement to declare it to be wrong or nullity – Rather Legislature can amend provisions of any statute to remove basis of judgment – Clause in statute – Prohibiting payment of interest on amount of security deposit is not arbitrary or violative of Article 14 of the Constitution of India. [Constitution of India , Art . 14 ]

S. 4 :Charge of income-tax -Accrual of income—Mercantile system of accounting – Accounting principle of real income—Enhanced rates shown as receipts in accounts but amounts not realised due to litigation and subsequent takeover of undertaking by Government- Amount due on such enhancement had not accrued and was not assessable [ S. 145 ]

S. 4: Charge of income-tax – Hindu undivided family – Sole surviving coparcener – Assessable as Hindu undivided family [Indian Income-tax Act, 1922 S.3 ]

S.4: Charge of income-tax – Cash credits- Assessee must prove the source of receipt -In the absence of such proof the Assessing Officer is entitled to treat it as taxable income – Cash credits could be assessed as undisclosed income [ S. 147, Indian Income-tax Act, 1922, S.34 ]

S. 2(43): Tax – Interest and penalty is not tax [Special Court (Trial of Offences relating to Transactions in Securities) Act, 1992, S. 3, 4, 11]

S.2(22)(e): Deemed dividend – Share holder means a registered share holder and not beneficial owner [Indian Income -tax Act ,1922 , S .2(6A)]

S. 2(12A): Books of account – Entries in loose papers/ sheets are irrelevant and inadmissible as evidence- Offences and prosecution- Settlement Commission- Investigation could not have been directed in case of high public functionaries on basis of legally inadmissible evidence in form of loose papers [S. 69A, 132, 143(3), 245D; Constitution of India 1949, Art. 32; Code of Criminal Procedure, 1973, S.155(2), 156(1); Indian Evidence Act, 1872, S.34]

S. 2(1A) : Agricultural income – Agriculture – cultivation of land – tilling of land, sowing of seeds etc – Certain other operations which are performed after produce sprouts from land , can also be regarded as agricultural operations- However spontaneous growth not involving any human labour or skill upon land are not products of agriculture – Income derived therefrom is not agricultural income . [ S. 10(1) , Indian Income-tax Act, 1922, S. 2(1) 4(3)(viii)].