S. 119: Central Board of Direct Taxes-Circular-Delay in filing of return-Carry forward and set off of business losses-Rejection of application by CBDT-High Court condoned the delay-Losses are allowed to be carried forward-SLP of revenue dismissed on account of delay of 162 days.[S. 72, 119(2)(b), 139 (4), Art. 136]

S. 115JB : Book profit-Capital profit on sale of fixed assets of assessee company cannot be directly credited to Reserves & Surplus and must be routed through Profit & Loss Account for computing book profits-Reworking of profits under section 115JB and assessing tax on ground that profit on sale of Fixed Assets credited to capital reserve by assessee was to be treated as normal profit for arriving at book profits under section 115JB was justified.[S.260A]

S. 115JB : Book profit-While computing book profit under section 115JB, entire amount of profits eligible under section 80HHC was to be excluded from book profit and not 80 per cent thereof-Sales tax incentive/remission received by assessee-company under State incentive scheme linked to fixed capital investment for expansion in a backward area, being capital in nature, was to be excluded from computation of book profit under section 115JB and fell outside ambit of income under section 2(24) [S.2(24), 80HHC, 260A]

S. 80IC: Special category states-Duty drawback receipts do not constitute profits derived from an eligible industrial undertaking so as to qualify for deduction-Matter was remanded to the Assessing Officer to reduce excise duty and customs duty paid on raw materials from duty drawback receipts and pass a fresh assessment order. [S.260A]

S. 80IB: Industrial undertakings-Interest income received consequent to refund of income tax under section 244A-Not profit or gain derived from assessee’s business activity either directly or indirectly-Not eligible for deduction.[S.244A]

S. 80-IA: Industrial undertakings-Infrastructure development-Electricity-Captive consumption-Market value-Export profits-No reduction of business profits eligible for deduction under section 80HHC was required merely on account of deduction allowed under section 80IA.[S.80HHC, 260A]

S. 80HHC: Export business-Matter was remanded back to the Assessing Officer for computation of taxable income after giving due deductions under section 80IB and section 80HHC. [S.80IB 260A]

S. 80G : Donation-Grant of exemption under Section 80G is not automatic on registration under Section 12AA-Requirements of Section 80G have to be satisfied independently in each assessment year-Assessee was enjoying benefit under Section 80G in terms of orders passed by Tribunal and as upheld by High Court-Revenue was directed to take action against assessee in case it finds violation of any of terms on which benefit under Section 80G was admissible. [S.12AA, Art. 136]

S. 69C: Unexplained expenditure-Bogus purchases-Failure to give an opportunity of cross-examination-Sham transaction-Deletion of addition was affirmed.[S.147, 148, 260A]

S. 69A: Unexplained money-Survey-Income from other sources-Additional income voluntarily offered-Taxes were paid-Demonetisation-Additional income and cash payment as income from other sources and taxed them at 60% under Section 115BBE-Statement was not retracted-First time before Tribunal, assessee argued that additional income was based solely on a survey statement without evidence-Tribunal rejected the contention-On appeal, High Court affirmed the order of the Tribunal.[S. 115BBE, 133A,139(5), 254(1), 260A]