S. 68 : Cash credits-Sale of shares-Capital gains-Penny stock-Finding of investigation wing-Exemption-Sham transaction-transactions were done through recognized stock exchange-There was no evidence that assessee had paid cash in return of receipt through cheque-Order of Tribunal deleting the addition was affirmed. [S. 10(38), 45, 69C]

S. 45 : Capital gains-Memorandum of understanding dated 16-6-2007 agreeing to sell their shares-Substantial consideration was received-Share certificates were not delivered to transferees-Transfer of shares shall take place only after registration by Registrar of company-Order of Tribunal deleting the addition was affirmed. [Companies Act, 1956, S. 29]

S. 44AD : Presumptive basis-Civil construction-Best judgement-Books of account not audited-Estimation at 4% is held to be justified. [S. 44AB, 144]

S. 37(1) : Business expenditure-Legal entity-business of providing technological and personnel support to food processing and dairy industry-Deploy skillful personnel and after 7-7-2008-Expenditure allowable as revenue expenditure-Order of Tribunal is affirmed.

S. 37(1) : Business expenditure-Electricity charges-Allowable as deduction.

S. 32 : Depreciation-Earth moving vehicles-Business of hire-Entitle depreciation at 30%. [S. 263]

S. 28(i) : Business loss-Interest on NPAs-Accrual basis-Interest on NPAs was rightly taxed by the Revenue-Guidelines of RBI binding on Banking Companies-Appeal of the assessee is dismissed. [S. 36(1)(vii), 43D, 119,260A, Reserve Bank of India, Banking Regulation Act, 1949, S. 21]

S. 12AA : Procedure for registration-Trust or institution-Commencement stage-Only has to examine whether the object of the Trust is charitable or not-Order of Tribunal directing to grant the registration is affirmed.[S. 2(15), 11]

S. 11 : Property held for charitable purposes-Accumulation of income-Revenue cannot insist on a copy of resolution being furnished regarding amount being accumulated for charitable activities. [S. 11(2), R. 17(2), Form No.10]

S. 4 : Charge of income-tax-Transfer of rights-Value of any benefit or perquisites-Business income-Transfer is genuine-Set off credit-No evidence-Deletion of addition is valid. [S. 28(iv)]