S. 68 : Cash credits-Long-term capital gains-Sale of shares-Cash credits-Information from Investigation Wing-Penny stock-Bogus accommodation entries-SLP of revenue dismissed.[S. 10(38),45,68, Art. 136]

S. 56 : Income from other sources-Buy-back of shares at a price lower than fair market value-Transaction was not purchase of shares simpliciter, but buy-back of its own shares amounting to reduction of share capital and, therefore, provisions of section 56(2)(x) read with Rule 11UA were not applicable-Addition was deleted-Order of Tribunal affirmed. [S. 56(2)(x),260A, R.11UA, Companies Act, S.68]

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Royalty-Fees for Technical Services-Lease Line Charges-Remittances towards IPLC/bandwidth services to a US company without deduction of tax at source, since Explanations 4 to 6 to section 9(1)(vi) inserted by Finance Act, 2012 were prospective in operation and payments were not chargeable to tax in India-disallowance under section 40(a)(i) and action under sections 201(1) and 201(1A) could not be sustained-DTAA-India-USA. [S.9(1)(vi), 9(1)(vii), 195, 201(1),201(IA), Art. 12]

S. 37(1): Business expenditure-Payment to LIC-Contractual obligation recorded in partnership deed to provide post-retirement benefits to an employee, who was also a partner-liability actually existing at time of payment and not a contingent liability-allowable as deduction. [S. 260A]

S. 37(1): Business expenditure-Guarantees given for repayment of loans raised by its subsidiaries and their business associates-In absence of any supporting material-Not allowable as business expenditure-Order of High Court affirmed. [Art. 136]

S. 36(1)(vii): Bad debt-Advance for simply helping business associate-Advance for issue of shares-Order of High Court affirmed-Appeal dismissed.[Art. 136]

S. 32: Depreciation-Additional depreciation-Put to use for less than 180 days-Statute provides for 50 per cent of additional depreciation in that year, and the remaining 50 per cent shall be allowed in the subsequent assessment year-Order of Tribunal set asdie. [S.260A]

S. 32 : Depreciation-Lease transactions-For an assessee in the business of leasing, letting out an owned asset constitutes its use for the purpose of business, entitling it to depreciation-SLP of revenue was dismissed on account of delay of 501 days and cost of Rs. 25000 was imposed.[Art. 136]

S. 28(i) : Business loss-Misappropriated by husband of a partner-Commission-excess or unreasonable-Order of Tribunal disallowing the claim is affirmed. [S.37(1), 40A(2), 260A]

S. 12AB: Procedure for fresh registration-Matter was remanded to CIT (E) to decide the application for registration in accordance with law and to inquire into the activities of the trust within the parameters of relevant provisions of the Act. [S. 12A, 12A(1)(ac)(iii), 80G, 260A]