S. 45 : Capital gains–Business income-Sale of shares–Average holding period of 628 days-Assessable as capital gains. [S. 28(i)]

S. 43B : Certain deductions on actual payment -Excise duty — Unutilised Modvat Credit as at end of year on inputs purchased, constitutes actual payment and deductible.

S. 4 : Charge of income-tax –Capital or revenue – Capital subsidy In terms of shareholders’ agreement from foreign company for investment in share capital of joint venture company — Capital receipt not liable to tax as revenue receipt. [S. 28(i)]

S. 260A : Appeal-High Court – Issue not raised and adjudicated by lower authorities – Cannot be permitted to be raised for first time in appeal to High Court .[ S.195A, 201(1) 201(1A) ]

S. 201 : Deduction at source-Failure to deduct or pay-Date of tendering of cheque for payment of Government dues could be deemed to be date of payment of tax-Delay in remittance of said amount to Government account by Bank, no interest can be levied. [S. 201(IA)]

S. 115JB : Book profit–Change in deprecation rate–Reduction due to change in depreciation rate is different from diminution in value of assets and same is not hit by clause (i) of Explanation 1 to section 115JB-Self serving evaluation of useful life of depreciable assets leading to higher rate of depreciation and consequently resulting reduced tax burden for assessee was not bonafide, same would be a colourable device to evade tax- Matter remanded to Assessing Officer for verification. [S. 32]

S. 69 : Unexplained investments-Addition cannot be made in year under consideration in respect of investment in immovable property made in earlier year.

S. 68 : Cash credits-Share premium-Nature and source of share premium received is explained-Addition cannot be made as cash credits.

S. 68 : Cash credits–Share application-High premium–Addition as unexplained cash credit is held to be justified.

S. 56 : Income from other sources–Gift-Assesse was transferor and not recipient and shares in question were those of listed companies- provisions of section 56(2)(viia) would not apply. [S. 56(2)(viia)]