S. 119: Central Board of Direct Taxes-Circular-Return of income-Condonation of delay-Successive resignation of employees handling accounts and income tax-related compliances causing delay in filing return of income constituted a reasonable cause-The authorities should adopt a liberal approach and condone the delay considering genuine hardships and the plight of the assessee. [S.139, Art.226].

S. 80M: Inter-corporate dividend-Shares held as stock-in-trade-Commercial business expenses cannot be deducted a second time on an estimated basis under the head of other sources to reduce statutory deductions. [S. 14A, 115BBB, 260A]

S. 80IA: Industrial undertakings-Enterprises engaged in infrastructure development-Transfer pricing-Captive power plant supplying electricity to non-eligible manufacturing units-Internal transfer pricing must be benchmarked against the landed cost of electricity supplied to consumers by the State Electricity Board-Benchmarked transaction using internal CUP method adopting average annual landed cost of electricity paid by its manufacturing units to State Electricity Boards (SEBs), since CPPs were established for captive use and not for sale to SEBs, internal CUP was the most appropriate method for determining ALP. [S. 80IA(8), 92BA, 92C, 92F(ii); R. 10B(1)(a)]

S. 69B: Amounts of investments not fully disclosed in books of account-Protective assessment-Assessment proceedings in respect of the same were concluded, significance of the protective assessment was lost, and the Petitioner could not make a further claim in respect of the same before the authorities. [S.132, Art. 226]

S. 69B: Amounts of investments not fully disclosed in books of account-Rejection of books and reference to DVO-Addition was affirmed. [S.69A, 142A, 260A]

S. 69: Unexplained investments-Addition-Stock statement furnished to bank-Statement linked to overdraft facility and drawing power-Addition sustained. [S.4, 260A]

S. 69: Unexplained investments-Natural justice-Addition made by the A.O. without furnishing the details of information received from CBEC was set aside-Matter was remanded with a direction to provide such details and grant sufficient time and opportunity of personal hearing to the assessee. [S.69A, 143(3), 144B, Art.226]

S. 68: Cash credits-Share application money-Failing to establish genuineness and creditworthiness-Addition sustained. [S. 260A]

S.54F: Capital gains-Investment in a residential house-No prohibition for using borrowed funds for construction, which would be later settled using sale consideration deposited in the Capital Gains Account Scheme; however, this should be demonstrated with materials to the concerned tax authority.[S. 45, Art. 226]

S. 54EC: Capital gains-Investment in specified bonds-Investment made before sale of property-Exemption restricted to capital gain available on date of investment. [S. 45, 260A]