S. 115BBDA : Dividend received from domestic companies, tax on- Constitutionally valid and not arbitrary – Petition was dismissed. [S.10(34), 115BA, 115-0, Art. 14]

S. 56 : Income from other sources-Fair market value of shares- Direct Cash Flow (DCF) method-Valuation done by Chartered Accountant is rejected–Failure to prove projection / estimation was done on scientific method-Matter was to be restored to AO who would scrutinize valuation report and, adopt own valuation if not satisfied with explanation of assessee; however, basis of valuation would be DCF method and he could not change method of valuation which was opted by assessee. [S.56(2)(viib), 11UA(b)]

S. 56 : Income from other sources-Compulsory cumulative convertible Preference Shares (CCCPS) at huge premium-Voting right on various resolutions–Matter restored to CIT(A) to consider all terms of issue of preference shares and decide a fresh in terms of rule 11UA. [S. 56(2)(viib), R.11UA(2)(a)]

S. 54F : Capital gains-Investment in a residential house- purchasing land before period of one year prior to sale of another capital asset- Not entitle to exemption. [S. 45]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability–Difference between creditors recorded in his books vis-a-vis balance in books of creditors-Sales and purchases not doubted–Addition is held to be not justified.

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits -Purchase of jaggery from farmers- Disallowance is held to be not justified. [R. 6DD]

S. 40(b)(v) : Amounts not deductible–Partner–Remuneration– Book profit-Despite quantum not specified in partnership deed remuneration paid to partners is held to be allowable.

S. 37(1) : Business expenditure–Business commenced-Expansion of existing business-Preoperative expenses such as salaries and wages, PF and ESI contribution, travelling expenses, and like other general administrative expenses etc is held to be allowable. [S. 35D(1)(ii)]

S. 37(1) : Business expenditure–Capital or revenue-ROC fees paid for increase in authorised capital for issuance of bonus shares was revenue expenditure-Matter remanded for verification.

S. 14A : Disallowance of expenditure-Exempt income-suo moto disallowance–Further disallowances made by the AO is held to be not justified. [R. 8D(2)(iii)]