S. 80P : Co-operative societies – Agricultural purpose or allied activities- Matter remanded to the AO to examine activities of assessee afresh and determine whether activities in compliance with activities of Co-Operative Society functioning under Kerala Co-Operative Societies Act, 1969 and to grant deduction. [S.80P(2), Kerala Co-operative Societies Act, 1969. ]

S. 80IC : Special category States – Electricity consumption – Not producing toll tax receipt does not make the purchases as bogus- Entitle to deduction.

S. 69C : Unexplained expenditure – Bogus purchases – Sales not doubted – Addition is restricted to 12.5 percent of non -genuine purchases and less gross profit already declared [ S.37(1) ]

S. 68 : Cash credits -Accommodation entries – Pravin Kumar Jain group –Loan confirmation , PAN no, copy of bank account of lender was produced – Submission was filed in pursuance of notice u/s 133(6) of the Act -Deletion of addition is held to be justified [ S.133(6)

S. 68 : Cash credits – Firm — Capital introduction by partners — Addition is held to be not valid – The period during which the lockdown was in force shall stand excluded for the purpose of working out the time limit for pronouncement of orders, as envisaged in rule 34(5) of the Income-tax (Appellate Tribunal) Rules, 1963 .[ S.254(1) , ITAT R.34(5)]

S. 57 : Income from other sources – Deductions -Interest expenditure to be set off against interest earned . [ S. 28,(i) 36(1)(iii), 56, 57(iii) ]

S.45: Capital gains —Transfer of property with co-owners —Consideration not received sale consideration -No capital gains could be taxed — Assessing Officer directed to verify non-receipt of consideration [ S. 2(47 )

S. 45 : Capital gains – Business income – Expenditure – Taxable as capital gains and not as business income .[ S.2(13) ,28(i) , 48 ]

S. 44AD :Presumptive taxation-Cash flow statement – Most of applications of income directly linked to business of assessee – Addition not warranted

S. 40(b)(iv) : Amounts not deductible – Partner – Interest -Partners Declaring interest in their returns and assessments completed in their hands — Double taxation of same income both in hands of partners as well as firm – Interest payment is held to be allowable .