S. 68 : Cash credits – Bogus purchase – Liability pursuant to purchase and corresponding stock declared in books – No case of under assessment and no bogus liability to make addition[ S.143(3)]

S. 50C : Capital gains – Full value of consideration – Stamp valuation – Disputed valuation adopted by stamp duty authorities before AO – AO is required to refer the matter of valuation to Valuation Officer.[ S.45 ]

S. 37(1) : Business expenditure – Making charges paid to Goldsmiths allowable as the Assessee offered to tax the making charges collected from customers.

S. 36(1)(iii) : Interest on borrowed capital – Disallowance cannot be made as Assessee established that loan advanced at interest lower than interest paid on unsecured loans out of interest free funds.

S. 32 : Depreciation -Building – Partly used for business – Depreciation on Building is disallowable in proportion of let out to total constructed area of the building. [S. 38]

S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed exempt income notwithstanding Assessee’s suo-motu disallowance is more than exempt income. [ R.8D ]

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Distributor/reseller agreement and service agreement for support to end users and after sales services have to be read together to examine nature of income – Access to trademarks, intellectual property, technical knowhow, derivative works, brand features, confidential information, etc., while discharging its obligation under both agreements – Amount payable under distributor/reseller agreement was ‘Royalty’ -DTAA- India – Ireland . [S. 195, 201, Art. 12]

S. 4 : Charge of income-tax – Capital or revenue -Sales tax subsidy – Purpose of sales tax subsidy scheme was to attract people to invest and take part in industrialization of certain areas in the State, either by setting up new unit or expanding existing unit – Subsidy was a non-taxable capital receipt. [S. 28(i)]

S. 260A : Appeal – High Court – Place of assessment –Pilot employed by the Indian Airlines-Jurisdiction- Transfer of case -Reassessment -Residing in Mumbai and assessed in Hyderabad — Reassessment notices in Mumbai and Hyderabad — Participating in assessment proceedings in Hyderabad — Objection to reassessment notice issued in Mumbai cannot be raised for first time before High Court — Assessment proceedings is held to be valid. [S. 120(3) 124, 127, 143(3), 147, 148]

S. 271(1)(c) : Penalty – Concealment -International transaction — Transfer pricing —Explanation of Arm’s length price is found to be bona fide—Penalty cannot be imposed- Explanation 7. [S. 92C]