S. 69A: Unexplained money-Addition cannot be made on the entire value of alleged unaccounted sales-Only the profit element embedded in such sales is taxable, even where the existence of clandestine sales is established through seized documents and corroborative third-party statements-Estimation of profit at 6% by the CIT(A) was held to be reasonable. [S. 69A, 147]

S. 68: Cash credits-Once the assessee establishes the identity and creditworthiness of the shareholders and the genuineness of the transaction, the burden shifts to the Assessing Officer. Addition was deleted.

S. 68: Cash credits-Purchase expenditure cannot be assessed as unexplained cash credit or unexplained expenditure where the source of payment is not disputed. [S. 69C, 250]

S.54F: Capital gains-Investment in a residential house-Construction of mosque not a residential house-Not entitled to exemption. [S. 45]

S. 45: Capital gains-Transfer-Any transaction by way of becoming a member-Joint Development Agreement (JDA)-Unregistered JDA/GPA can still constitute transfer under section 2(47)(vi)-Transfer of 62% land in exchange for 38% developed area taxable in year of agreement-The matter was remanded only for recomputation of capital gains in accordance with sections 48 and 50C. [S. 2(47)(vi), 48, 50C]

S.43CA: Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value-Stamp valuation-Where part consideration is received by account payee cheque on the date of agreement, stamp duty value as on the date of agreement has to be adopted-No addition. Ss. 43CA(3), 43CA(4)[S. 43CA(3), 43CA(4), 50C]

S. 41(1): Profits chargeable to tax-Remission or cessation of trading liability-Outstanding liability cannot be taxed merely because it has become time-barred under the Limitation Act-In the absence of remission or cessation of liability, section 41(1) cannot be invoked. [S. 145]

S. 40(a)(ia): Amounts not deductible-Deduction at source-Compensation paid for surrender of rights is not interest-Disallowance is not justified. [S. 194A]

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Reimbursement of professional fees and expatriate salary costs to a foreign AE is not liable to TDS where payments do not satisfy the ‘make available’ test under the DTAA and salary costs are reimbursed on a cost-to-cost basis without any profit element.-Not liable to deduct tax at source [S. 9(1)(i), 195]

S. 37(1): Business expenditure-Employees’ Stock Option Plan (ESOP)-Discount on ESOP-Ascertained liability-Deduction allowable.