S. 69: Unexplained investments- Search assessment-Sale of shares-Opening stock ignored by Assessing Officer-Addition for unexplained investment deleted.- Addition based on material collected behind assessee’s back-No opportunity of rebuttal-Addition deleted- Loose papers-No corroborative evidence of investment-Addition deleted- Bank deposits recorded in books-Entire deposits cannot be treated as unexplained income- CIT(A) was not justified in relying on Joint Parliamentary Committee on scam, when the assessee explaining specific transactions of deposit-addition was deleted- Bonds registered in Assessee’s name by order of Special Court. Assessing Officer’s computation of accrued interest as assessee’s income was sustained.- Surrender of Income-Addition was directed to be deleted even if reassessed income lower than sum surrendered. ( [S. 4, 68, 69A, 132,132(4), 139, Special Court (Trial of Offences Relating to Transactions in Securities Act, 1992]

S. 68 : Cash credits- Long-term capital gains-Penny stock-NCL research-Kolkata Investigation report-Statement of persons involved- Artificial rise in share price-Transactions held non-genuine-Exemption denied.[S.10(38), 45, 132, 147]

S. 68: Cash credits-Opening balances-No fresh credit during relevant previous year-Addition not sustainable.

S. 68: Cash credits-Identity, creditworthiness and genuineness established-Source of source explained-Non-furnishing of lender’s return of income not fatal.

S. 68 : Cash credits-Unsecured loans-Identity, creditworthiness and genuineness established-Addition deleted- Penny stock- Long-term capital gains-Penny stock-Essar (India) Ltd-Purchase and sale supported by demat account and banking records-Exemption allowable.[S 10(38), 45]

S. 56 : Income from other sources-Share premium-Fair market value-Valuation report not examined by Assessing Officer-Matter remanded. [S.56(2)(viib), R. 11UA]

S 45: Capital gains-Rights entitlement not taxable in India-Short-term capital loss not to be set off against exempt gain- DTAA-India-Ireland [S.2(42A), 2(42B). 70, 71, 74 Art. 13(5), 13(6)]

S. 41(1) : Profits chargeable to tax- Remission or cessation of trading liability-Lease deposit outstanding for several years-No cessation of liability-Addition deleted- Booking advances received in earlier years-No remission or cessation-Addition deleted. [S.28(i)]

S. 37(1): Business expenditure-Technology licensing agreement-Payment initially capitalised as intangible asset-Expenditure held allowable as revenue expenditure- Foreign exchange loss-Expenditure arising from same business agreement-Revenue expenditure allowable. [Expln. 3 to S. 32(1)]

S. 37(1): Business expenditure-Employees’ Stock Option Plan-Discount on issue of shares-Revenue expenditure allowable- Entertainment and guest house expenses-No finding that expenditure was not incurred for business-Disallowance deleted.