S. 68 : Cash credits – Share capital- Builder and developer- Failed to prove identity and creditworthiness of shareholders- Summons served were retuned back with remark the addressees were not available – Addition was held to be justified .[ S.131 ]

S. 48 : Capital gains –Indexed cost- Since property was acquired by father of assessee in year 1945, indexed cost of acquisition was required to be computed by considering cost of acquisition for year beginning on 1-4-1981 [ S.45, 49(1)(iii) ]

S. 45: Capital gains- Business – Income earned on sale of floor of building was held to be assessable as capital gains and not as business income -The assessee was not a property dealer but a member of the Indian revenue Service, working with the department itself. Only a portion of the property was sold. Profit on sale of land is held to be assessable as capital gains [ S. 2(13 )]

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Assets and liabilities were transferred to special purpose vehicle -Tribunal failed to give independent finding , accordingly the matter was remanded to Tribunal

S.40(a)(ia):Amounts not deductible – Deduction at source –Caual workers-Labour payment to one or two persons on site for disbursing same among labourers- In absence of any contract to carry out any work with a specified person there is no liability to deduct tax at source . [ S.194C ]

S.40(a)(ia):Amounts not deductible – Deduction at source – A co-operative society formed for the welfare of the employee of the life insurance corporation and all members of assessee is not liable to deduct tax at source- Decision of jurisdictional High Court is binding on the AO [ S. 194A ]

S. 37(1) : Business expenditure – Expenses incurred prior to setting up of business is held to be not allowable as business loss [ S.28(i) ]

S. 37(1) : Business expenditure –Commission paid to related directors of the assessee company is held to be allowable as business expenditure.

S. 37(1) : Business expenditure -Lease rent paid for shed taken on lease was held to be allowable as business expenditure considering the business expediency .

S. 32 : Depreciation – Hospital equipments – Since assessee could neither sell said hospital equipments as scrap nor it could use them and same were also written off in its books of account, written down value of hospital equipments was to be allowed as depreciation [ S.32(1)(iii) ]