S. 50B : Capital gains–Slump sale–Full value of consideration-Conditional sale -Part consideration would be paid on obtaining waiver of Minimum Guarantee Throughput (MGT) from Port Trust till transfer of terminal undertaking by assessee to KCPL-Amount retained by KCPL was never paid to the assessee as the assessee was not able to get waiver of Minimum Guarantee Throughput (MGT) from Port Trust. Consideration which was not received cannot be assessed as consideration received for sale-AO was directed to verify and decide in accordance with law. [S. 45, 48]

S. 48 : Capital gains–Computation -Indexed cost of improvement-documentary evidence to prove quantum of expenditure incurred on improvement was not furnished -Disallowance is held to be justified. [S. 45, 54]

S. 45 : Capital gains-Transfer of development right-Handing over possession of Land -Unregistered agreement-No valid transfer– Not liable to capital gains tax. [S.2 (47)(v)]

S. 45 : Capital gains-Business income–Investment in shares-Earlier years the transactions of sale of shares were accepted as capital gains-Current year short-term capital gains arising from share transaction could not be assessed as business income. [S. 28(i)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Maistries-leaders of shipping labour groups- Payment to shipping labour group leaders is not liable to deduct tax at source–No disallowances can be made. [S. 194C]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-MIS Services, Cost Allocation, Corporate Allocation Charges and Legal Expenses -Since services could not be said to have made available technical skill, knowledge and know-how in legal sense of ‘make available’ clause- Not liable to deduct tax bat source -DTAA-India -USA [ S. 9(1)(vii), 195, Art. 12]

S. 40(a)(ia) : Amounts not deductible-Deduction at source–Clearing and forwarding charges-Reimbursement of expenses- Agreement was not furnished–Matter remanded. [S. 172, 194C]

S. 37(1) : Business expenditure-Warranty expenses-In terms of tripartite agreement entered into between assessee, a Russian company and Indian Air Force, assessee had to supply engines of aircrafts to Indian Air Force manufactured by Rusian company-warranty in respect of engines so supplied was responsibility of assessee for a specified period- Warranty expenses is held to be allowable.

S. 37(1) : Business expenditure-Sales promotion expenses-When all relevant details for sales promotion expenses was filed, without verifying veracity of said expenses under S 133(6) and 131 , disallowance cannot be made. [S. 131, 133(6)]

S. 37(1) : Business expenditure-Commission–Prior period expenditure -Expenditure for earlier year in its ledger account in respect of commission pertaining to current year-Merely on the basis of entries in books of account disallowance cannot be made . [S. 145]