S. 69C : Unexplained expenditure-Unexplained investments-Bogus purchases-Sales not disputed –Estimate at 12.5%-Only profit element embedded in such purchases is taxable, not the entire amount. [S. 69, 147, 148, 260A]

S. 69C: Unexplained expenditure-Search and seizure-Notings in diary and loose papers-Assessee’s failure to explain source of funds and nexus of expenditure with developer’s transactions-Concurrent findings of lower authorities upheld.[S.132, 260A]

S. 69B : Amounts of investments not fully disclosed in books of account –Undisclosed investment in shares-Alleged stock mismatch-Order of Tribunal deleting the disallowance affirmed. [S. 260A]

S. 68: Cash credits-Foreign Currency Convertible Bonds (FCCB)-Onus of proof-Assessee’s duty is to prove identity of immediate subscriber, not ultimate bondholders source of source-Order of Tribunal deleting the addition is affirmed. [S.260A]

S. 68 : Cash credits –Received through banking channel-Repaid in subsequent year-Failure to charge interest-Order of Tribunal deleting the addition is affirmed.[S. 260A]

S. 68 : Cash credits-Major portion was repaid during the year-Order of Tribunal deleting the addition is affirmed-Additions deleted-Set aside assessment-Additions which were deleted by the CIT(A) in the first round of proceedings and not contested further by the Revenue had attained finality and could not be made again by the Assessing Officer in the set-aside assessment. [S. 254(1), 260A]

S. 50B : Capital gains-Slump sale-Gain from transfer of an undertaking as a going concern is assessable as capital gain and not as business income. [S. 28(i), 28(iv) 45, 260A]

S. 45 : Capital gains-Year of assessability-Contingent consideration-Accrual of income–liable to tax only on the consideration actually received during the year, and not on the entire amount mentioned in the sale deed. [S. 2(47); Transfer of Property Act, 1882, S. 53A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Amendment by Finance Act, 2014 restricting disallowance to 30 per cent held to be prospective-Assessee’s default, the entire expenditure was to be disallowed, and the benefit of the reduced 30 per cent disallowance was not available-Order of Tribunal set aside. [S. 260A]

S. 37(1) : Business expenditure-Quantum of expenditure irrelevant-Renovation of schools and temples-Expenditure incurred out of business exigency to maintain good relations with local villagers for smooth conduct of business is allowable as revenue expenditure, where no capital asset is acquired by the assessee.[S. 260A]