S. 68 : Cash credits-Capital gains-Sale of property-Part of sale consideration credited in assessee’s account–Addition as income from undisclosed source is held to be justified. [S. 45]

S. 68 : Cash Credits-Source of fund explained–Burden discharged -Deletion of addition is held to be justified.

S. 55A : Capital gains-Reference to valuation officer-Cost of acquisition-Filing valuation report-Refusal to make reference to valuation officer is not proper-Matter remitted to Assessing Officer for reference to valuation officer. [S. 45]

S.28(i) Business income- : Capital Gains-Capital asset-Agricultural land-Purchase lands from land owners, convert them for non-agricultural use and sell them to companies-Property sold was not capital asset- Assessable as business income . [S. 2(14), 45 ]

S. 45 : Capital gains-Capital loss-Loss incurred on account of sale of shares to sister concern-Neither fraudulent nor colourable device-Allowable as capital loss. [S. 260A]

S. 37(1) : Business expenditure-Year of allowability of expenditure-Method of accounting-Rate of tax is same in both assessment years-Question academic-No question of law. [S. 145, 260A]

S. 37(1) : Business expenditure-Capital or revenue-Manufacture of yarn-Replacement of old machinery by purchase and installation of new machinery-Not allowable as revenue expenditure.

S. 37(1) : Business expenditure—Commission paid to persons who have referred the students–Disallowance of 50% of commission is held to be justified.

S. 28(i) : Business Loss-Embezzlement of cash by director- Recovery of amount or outcome of pending criminal prosecution against director before Metropolitan Magistrate is irrelevant– Allowable as deduction. [S. 36(2), 37(1)]

S. 28(i) : Business loss-Bank guarantee-Loss due to encashment of bank guarantee is allowable as business loss.