S. 132 : Search and seizure-Reason to believe-Documents necessary for investigation-Search proceedings valid-Noting information received as well as recording of reasons followed-Notice under section 153A was valid-Satisfaction by jurisdictional Assessing Officer that books of account or documents seized relate to such third person-Notice under section 153C is valid-Transfer of case-Co-ordination and centralisation of assessment proceeding-Transfer is valid-Recovery of tax-Provisional attachment was valid. [S. 127, 153A, 153C, 281B, Code of Criminal Procedure, 1973, Rule 112, Art, 226]

S. 92C : Transfer pricing-Arm’s length price-Bright Line test method-Advertising, marketing and promotion expenditure-Order of Tribunal deleting the addition was affirmed. [S. 92CA(3), 144C, 260A]

S. 80IA : Industrial undertakings-Infrastructure development-Construction of technology park-Leasing of industrial units-notification to be issued by central board of direct taxes is only a formality once approval is granted by government-Order of Tribunal deleting disallowance was affirmed.[S.80(IA)(4))(iii)]

S. 69 : Unexplained investments-Search and seizure-Block assessment-Educational institution-Deletion of addition was held to be proper. [S. 10(22), 10(23C)(vi), 11, 132, 158BC, 260A]

S. 45 : Capital gains-Business income-Trading or investment-Two separate portfolios-Order of tribunal reversing order of Commissioner (Appeals) and holding gains as business income was set aside. [S. 28(i)]

S. 43B : Deductions on actual payment-Contributions to provident fund and employees’ state insurance-Not deposited in respective fund within stipulated time-Not allowable as deduction. [S. 36(1)(va)]

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess-Not allowable as business expenditure-Amended by Finance Act, 2022 with retrospective effect from 1-4-2005 (2022) 442 ITR 91 (St). [S. 37(1)]

S. 37(1) : Business expenditure-Capital or revenue tests-Rubber plantation-Amount spent on upkeep and maintenance of mature rubber trees-Allowable as revenue expenditure-Cost of replacement of dead and useless rubber trees deductible as replacement cost [R. 7A(2)].

S. 37(1) : Business expenditure-loss on forward contracts for foreign exchange-Transactions to hedge against risk of foreign exchange fluctuations-loss not speculative and to be allowed. [S. 28(i), 43(5)]

S. 37(1) : Business expenditure-Donation given for public welfare of construction of ring road-Allowable expenditure.