S. 68 : Cash credits-Failure to give an opportunity of cross examination-Tribunal remanding the matter to CIT (A)-Order of Tribunal is affirmed. [S. 254 (1)]

S. 48 : Capital gains-Cost of acquisition-Encumbrance-Property received under settlement deed-Land mortgaged to bank-Proportionate OTS amount paid to clear encumbrances allowable as deduction. [S. 45, 49, 55]

S. 45 : Capital gains-Investment in shares-High turnover of shares-Assessable as capital gains and not as business income. [S. 28(i)]

S. 28(i) : Business loss-Foreign exchange derivative loss cannot be disallowed holding it to be a speculative loss-Remand to the Assessing Officer is held to be valid. [S. 43(5)]

S. 28(i) : Business loss-Investment in subsidiary-Wound up of subsidiary-Loss is allowable. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds more than investment-No disallowance can be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Failure to prove that no expenditure was incurred-Disallowance of expenditure is held to be justified. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction is mandatory-Disallowance cannot exceed exempt income. [R. 8D]

S. 11 : Property held for charitable purposes-Salary paid to secretary-50% of salary was allowed as reasonable-No substantial question of law. [S.260A]

S. 10AA : Special economic zones-Export turnover-Expenditure incurred in foreign exchange is to be excluded from ‘Export Turnover’ for purpose of computing deduction.