S. 68: Cash credits-Alleged bogus sales-Notice issued to customers was returned unserved-Order of Tribunal affirming the addition is affirmed. [S,260A]

S. 68 : Cash credits-Long-term capital gains-Sale of shares-Cash credits-Information from Investigation Wing-Penny stock-Bogus accommodation entries-SLP of revenue dismissed.[S. 10(38),45,68, Art. 136]

S. 56 : Income from other sources-Buy-back of shares at a price lower than fair market value-Transaction was not purchase of shares simpliciter, but buy-back of its own shares amounting to reduction of share capital and, therefore, provisions of section 56(2)(x) read with Rule 11UA were not applicable-Addition was deleted-Order of Tribunal affirmed. [S. 56(2)(x),260A, R.11UA, Companies Act, S.68]

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Royalty-Fees for Technical Services-Lease Line Charges-Remittances towards IPLC/bandwidth services to a US company without deduction of tax at source, since Explanations 4 to 6 to section 9(1)(vi) inserted by Finance Act, 2012 were prospective in operation and payments were not chargeable to tax in India-disallowance under section 40(a)(i) and action under sections 201(1) and 201(1A) could not be sustained-DTAA-India-USA. [S.9(1)(vi), 9(1)(vii), 195, 201(1),201(IA), Art. 12]

S. 37(1): Business expenditure-Payment to LIC-Contractual obligation recorded in partnership deed to provide post-retirement benefits to an employee, who was also a partner-liability actually existing at time of payment and not a contingent liability-allowable as deduction. [S. 260A]

S. 37(1): Business expenditure-Guarantees given for repayment of loans raised by its subsidiaries and their business associates-In absence of any supporting material-Not allowable as business expenditure-Order of High Court affirmed. [Art. 136]

S. 36(1)(vii): Bad debt-Advance for simply helping business associate-Advance for issue of shares-Order of High Court affirmed-Appeal dismissed.[Art. 136]

S. 32: Depreciation-Additional depreciation-Put to use for less than 180 days-Statute provides for 50 per cent of additional depreciation in that year, and the remaining 50 per cent shall be allowed in the subsequent assessment year-Order of Tribunal set asdie. [S.260A]

S. 32 : Depreciation-Lease transactions-For an assessee in the business of leasing, letting out an owned asset constitutes its use for the purpose of business, entitling it to depreciation-SLP of revenue was dismissed on account of delay of 501 days and cost of Rs. 25000 was imposed.[Art. 136]

S. 28(i) : Business loss-Misappropriated by husband of a partner-Commission-excess or unreasonable-Order of Tribunal disallowing the claim is affirmed. [S.37(1), 40A(2), 260A]