S. 72 : Carry forward and set off of business losses – Carry forward and set off of business losses against capital gains – Entitled to set off of carried forward business loss against capital gain arising on sale of business asset used for the purpose of business- Business Loss can be carried forward and set off against income attributable to business though assessed under different head – Interpretation of taxing statutes — Expressions in provision. [ S. 28 (i) , 45 ,50, 71 , 72 (1)(i).]

S. 69 : Unexplained investments-Gifts from relatives-Evidence not produced-Order of Tribunal is affirmed. [S. 254(1)]

S. 68 : Cash credits-Share application money-Primary onus on the assessee-Identity was applicants not established-Addition is held to be justified.

S. 47(xiii) : Capital gains-Transaction not regarded as transfer-Conversion of firm in to limited Liability partnership (LLP)-Conversion of equity shares held in Indian Company Into Partnership Interest in Limited Liability Partnership-Transfer-Capital gains taxable-Condition that total sales, turnover or gross receipts in business of company in any of three three preceding years should not exceed Rs. 60 Lakhs not satisfied-Transfer not exempt-Cost of acquisition of shares would be price at which shares were acquired by shareholder. [S. 2(47) 45, 47(xiiib), 47A(4), 50D, Limited Liability Partnership Act, 2008, S. 58(4)]

S. 45 : Capital gains-Transfer of shares by a series of transactions-Assessee has the right to arrange matters legally to avoid tax Tribunal right in holding that the transactions are genuine. [S. 49(1)(e)(xiii)]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Tax deducted and interest not refunded-Cannot be assessed as cessation of liability. [S. 41 (1)(a)]

S. 37(1) : Business expenditure-Provision for warranty on scientific basis-Allowable as deduction-Payment of market support fee and transmission fee for smooth running of business-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Capital or revenue-Licence fee paid to Department of Telecommunications is allowable as revenue expenditure-Loan for revenue purposes-Fluctuation loss-Allowable in year of increase in rate-Question cannot be raised even without taking in the grounds raised before the High Court. [S. 260A]

S. 37(1) : Business expenditure-Setting up and commencement of business-lease deed executed-Business set up-Pre-Operative expenses allowable.

S. 36(1)(iii) : Interest on borrowed capital-Presumption that investment was made from interest-free funds-Disallowance of interest is held to be not justified-Expansion and Extension of business-Proviso to Section 36(1)(iii) applies only to extension of business-Proviso does not have retrospective operation-Res judicata is not applicable to income tax proceedings but principle of consistency must be followed.