S. 28(i): Business loss-Assessee a share trader and investor-Losses from share transactions including listed securities-Assessing Officer disallowing claim treating shares as penny stocks-Assessee transacting huge volumes of shares-Addition made on basis of preconceived idea after general investigation of investigating authority-Order set aside and addition quashed. [S. 45, 69]

S. 11: Property held for charitable purposes-Exemption-Capital gains-Sale proceeds reinvested in fixed deposit with scheduled bank-Deemed acquisition of new capital asset-Assessee eligible for exemption on capital gains-Interest earned on fixed deposits retained in bank account and applied for charitable purposes-Qualifies for exemption. [S. 11(5), 11(IA)]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Double Taxation Avoidance Agreement not affected by amendments in Act-Assessee entitled to advantage of provisions under Agreement-Assessee a non-resident telecommunication operator providing international carriage and connectivity services in Sri Lanka-Interconnect user charges not royalty-Not taxable in India-DTAA-India-Sri Lanka.[S. 9(1)(vi), Explns. 2, 5, 6, 147 , arts. 7, 12]

S. 45: Capital gains – Income from other sources – Transfer of Development Rights — Compensation received under a redevelopment agreement is assessable as Capital Gains and not as Income from Other Sources. Exemption under section 54EC is allowable. [ S. 2(14), 2(47), 54EC, 56, 50C & 147)

S. 80IB: Industrial undertakings – Special category States –
– Research & Development (R&D) expenditure – Allocation of R&D expenses to eligible manufacturing units – No allocation permissible in the absence of direct nexus between R&D activity and eligible units – Revenue’s appeal dismissed. [S. 35(2AB), 80IC , 260A)

S.147: Reassessment – After the expiry of four years – Reference to DVO – Fair Market Value as on 1-4-1981 – Amendment to section 55A(a) prospective – Reassessment invalid- The Court left open the question regarding the validity of a notice issued in the name of a deceased person. [S. 45, 48, 55A, 148, Art . 226 ]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Lack of proper enquiry-Short-term capital loss on sale of shares-FIFO method-The issue was examined by the AO during the assessment proceedings, who had taken a correct view –CRS expenditure-Revision order was quashed-Exempt income-Revision order was affirmed.[S. 14A, 80G]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Lack of proper enquiry-Assessment order passed by the AO without examining the claim by conducting relevant enquiries which ought to have been carried out-Revision order was affirmed. [S.54]

S. 250: Appeal-Commissioner (Appeals)-Procedure-Notices sent to the wrong e-mail address-Failure to intimate change of email-Ex parte order was set aside-Cost of Rs 2500 was imposed on each appeal. [S. 254(1)]

S. 194J: Deduction at source-Fees for professional or technical services-Clearing charges or professional charges paid to CCIL-The AO is directed to delete the addition.[S.201(1), Form No.26A]