S. 80G: Donation-Approval -Application for final approval -Application filed six months before expiry of provisional approval -Within limitation. General principles-Rules of procedure are intended to advance justice-Tribunal quashed the order and restored the matter to the CIT E) to consider the application on merits after granting an effective opportunity of hearing. [S.80G(5)]

S. 80G: Donation-Approval -Application under wrong sub-clause -Curable defect -Commissioner (Exemptions) must permit rectification -Approval cannot be denied for technical error-Duty of Officers to assist assesses in obtaining relief to which assessee entitled-CBDT Circular No. 14 (XL-35), dated 11-4-1955 [S.12A, 80G(5) S. 119)]

S. 69C: Unexplained expenditure-AO treated two purchase parties as bogus and made 100% disallowance-Bhawarlal Jain group-Since sales had not been doubted and without purchases, there cannot be any sales, no adverse inference could be made insofar as the export of diamonds was concerned, for which all documentary evidence was placed on record-Addition was restricted to profit element. [S. 69C, 133A, 148]

S. 69: Unexplained investments-Unexplained money -Cash deposits -Advance received under unregistered agreement to sell-Addition was deleted-Agricultural income accepted as explained sources-Addition was deleted. [Indian Registration Act, 1908, S. 17]

S. 68: Cash credits -Interest on loans -No disallowance when assessee proves identity, creditworthiness and genuineness of lenders and loans accepted by Revenue-Addition was deleted. [S. 37(1)]

S. 68 : Cash credits -Burden of proof -Share application money -Assessee filing documents such as income-tax returns, confirmations, bank statements, income-tax notices and assessment orders of share applicants -Assessing Officer not making independent enquiry or calling for particulars from parties who advanced money -Addition was deleted.

S. 68: Cash credits-Loose sheets / Excel sheets found during search -No corroborative evidence -A seized loose sheet or Excel sheet, by itself, cannot justify additions under sections 68 or 69C unless the Revenue establishes ownership of the document, its nexus with the assessee, and corroborates the entries with independent evidence. Documents must be read in their entirety and not selectively. Additions were deleted.[S.69C, 115BBE]

S. 68: Cash credits-Share capital and premium-Identity, genuineness of transaction and creditworthiness of investor were established -Addition deleted.

S. 68 : Cash credits-Reassessment-AO reopened case of assessee on the ground of large cash deposits in bank accounts-However, reassessment was ended with a disallowance under section 80P-Since no addition was made on account of cash deposit, the disallowance was not sustainable. [S. 80P, 147,148]

S. 68: Cash credits-Partner’s capital contribution –Partner was assessed to tax, and the source of the capital contribution was proved-Addition in the hands of the firm was not sustainable.