S.45: Capital gains- Business income- Share investment- All transactions were delivery based, income arising from such investment was to be treated as capital gain when all earlier years revenue assessed the gains as capital gains. [ S.28(i) ]

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Commission- Disallowance of 30% of commission- Without placing on record any material to prove that payments made by assessee were excessive or unreasonable considering fair market value of services -No disallowance can be made .

S.37(1):Business expenditure- Travelling expenditure -Fringe benefit tax on travelling expenses incurred by it during year, travelling expenses could not be disallowed on account of personal expenditure. [ S.115JB ]

S. 36(1)(iii) :Interest on borrowed capital –Captive power plant for expansion of existing business- Allowable as deduction irrespective of fact whether such power plant had commenced production or not in year under consideration

S. 36(1)(ii):Bonus or commission- Restriction of allowance would apply only to an employee who is also share in company -Payment made to agent who was an MD of company in earlier years and in the relevant year he was not an employee -Disallowance cannot be made .

S.28(i): Business income- Capital gains-Conversion in to stock in trade-Development agreement-Project completion method-Advance received equivalent to share cannot be taxed in the year of receipt –As per the agreement ,right to collect said amount would crystallize on day when tenements or portion of land would be sold/handed over by developers to prospective buyers in subsequent year- Taxable in subsequent year- Capital gains arising on conversion of land into stock-in-trade prior to development agreement would also be taxed in subsequent year in which the right to collect the amount is crystallized- Conversion of capital asset into stock-in-trade, capital gains had to be worked out on basis of fair market value of property as on date of conversion and not on basis of existing market value of property . [ S. 4, 5,45, 145 ]

S. 14A : Disallowance of expenditure – Exempt income –Income from other sources- Dividend income on investment made in Oman-No disallowances can be made- DTAA-India- Oman [S.90(2), Art . 25, R.8D ]

S. 271(1)(c) : Penalty – Concealment -Disallowance of claim -Rejection of revised return-Mere making claim which is unsustainable in law will not amount to furnishing inadequate particulars ; what the law contemplates is making of a false claim or claim which is not bona fide – Deletion of penalty is held to be justified. [ S.80IC ]

S. 4 : Charge of income-tax -Power subsidy- Capital or revenue- Purpose test- Power subsidy which is available only to new units and units which have undergone an expansion , purpose being incentive as a capital subsidy has to be regarded as capital receipts .[ S.28(i) ]

S. 254(1) : Appellate Tribunal – Duties- It would always be ideal for the Tribunal to consider the entire issues in an appeal , so that the parties can have a quietus to the matter.