S. 72 : Carry forward and set off of business losses–Discontinued business-Entitle to set off the loss against business income of the current year. [S. 28(i), 71, 72(1), 176(3A)]

S. 69A : Unexplained money–Survey–Jangad stock–Stock register is supported by confirmation letter–Addition is held to be not valid.

S. 68 : Cash credits-Share application money–Premium-Confirmation filed-Mode of investment is explained–Addition is held to be not justified.

S. 68 : Cash credit-Share application money–Share premium-Name, address, PAN of share applicants together with copies of their balance sheets and returns and, amount received by account payee cheques out of sufficient bank balances maintained-Addition is held to be not valid.

S. 56 : Income from other sources–Shares at premium-Valuation of shares–FMV of shares was estimated after considering intangible assets like goodwill, know-how, patents, copyrights, trademarks, licences, franchises, etc-Re valuation of shares by the AO is held to be not justified. [S. 52(viib)]

S. 54F : Capital gains-Investment in residential house-Purchase– Constructed in phased manner and payments was linked to stage of construction, it is a purchase and not construction of new asset-Exemption is allowable. [S. 45]

S. 37(1) : Business expenditure-Parking fees–Ad hoc disallowance of 20% disallowance–Books of account not rejected– Disallowance is held to be not valid. [S. 143(3)]

S. 37(1) : Business expenses-Provision-Provision for expense was based on scientific and reasonable basis and the liability to incur the same was certain, deduction is allowable.

S. 37(1) : Business expenditure-Festival expenditure–Books of account not rejected-Disallowance of 25% of festival expenses cannot be disallow when books of accounts were duly audited and no discrepancy was found. [S. 145]

S. 36(1)(iii) : Interest on borrowed capital–Rental premium equivalent to 3 months monthly rent-lease rent–Excessive or un reasonable-Matter remanded to AO for reconsideration. [S. 40A(2), Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.]