S. 56 : Income from other sources-Consideration received for shares in excess of fair market value-Allotment of new shares as right is creation of property cannot be considered as transfer-Section 56(2)(vii)(c) not applicable on new allotment of shares-Issue of additional shares for renunciation of rights issue-Wife/Father fall within definition of ‘relatives’ excluded-Order of Tribunal is affirmed. [S. 56(2)(vii)(c), 260A]

S. 47(iv) :Capital gains-Transaction not regarded as transfer-Capital gains Subsidiary-Prerequisites provided to Indian subsidiary company-Assessee inadvertently offered receipt for levy of tax-Tax could not be levied as receipt did not constitute income-Income-tax leviable only in accordance with provisions of Income-tax Act-Admission by assessee is not conclusive. [S.4, 45]

S. 45:Capital gains-Business income-Total income-Redemption of mutual fund units-Income taxable as capital gains and not as business income. [2(45), 28(i), 260A]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Genuineness of transaction was in doubt-Order of Tribunal is affirmed. [R.6DD(j)]

S. 40A (2) : Expenses or payments not deductible—Excessive or unreasonable-Burden of proof on Revenue to show that expenditure was Excessive-The Assessing Officer is duty-bound to provide an opportunity to the assessee to place on record the requisite evidence to justify its claim Matter remanded to the file of the Assessing Officer-Directed to issue fresh notice and decide in accordance with law. [S. 40A(2)(a)), 40A(2)(b), 260A]

S. 36(1)(iii) : Interest on borrowed capital-Business of retail lending as well as Long Term finance for construction of homes-Deduction claimed on interest on Long Term housing loan, which has been recalculated by the AO based on total receipt of the business-Rule of consistency is followed-Order of Tribunal deleting the addition is affirmed.[S.260A]

S.14A : Disallowance of expenditure-Exempt income-Shares held as stock in trade-Dividend income earned-Order of Tribunal deleting the addition is affirmed. [S.260A]

S. 14A : Disallowance of expenditure-Exempt income-Depreciation-Rule of consistency followed-Appeal of Revenue is dismissed.[S. 32, R.8D]

S. 12AB: Procedure for fresh registration Cancellation of registration with retrospective effect-On writ filed by the petitioner, the Court granted the interim stay. [S. 12A, 12AA, 12AB(4), Art. 226]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Subscription fee-From members Non-commercial objectives, professional practices, and articles did not reflect any element of commerciality, subscription fee would not be in nature of FTS-Also exempt on principle of mutuality-DTAA-India-Switzerland.[S.4, 260A, Art. 6.2(a), 6(2)(b), 7.5, 12]