1)     CIT Vs KASTURBHAI MAYABHAI PVT. LTD. – Gujarat High Court- Section 681) 

It has been held that since the assessee has proved all the ingredient of section 68, no addition could be made to the income of the assesee.In respect of disallowance under section 14A, the High Court has held that since the AO did not establish the nexus between the expenses and the exempt income the ITAT was correct in deleting the addition 

          (Click here for judgment)  

2)     CIT VS SHREE BALA FINVEST PVT LTD - Gujarat High Court- Section  271(1)(c)

The High Court has affirmed the order of the ITAT, who in turn affirmed the order of the CIT(A) who deleted the penalty and held that penalty is not leviable on disallowance of expenses, where the appellant has actually incurred the expenses and all the information was duly provided to the Assessing Officer.

          (Click here for judgment)  

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