S. 45 : Capital gains-Full value of consideration-Addition cannot be made on the basis of receipts shown in form No 26AS-Transfer-Matter remanded to verify whether there was transfer of land in Terms of Section 53 A of transfer of property. [S. 2(27)(v), Transfer of property Act, 1882, S. 53A]

S. 44AD : Presumptive taxation-Contract receipts-Contract and sub-contract-Income to be estimated at 8 percent on contract receipt and 5 percent on sub-contract receipts only-Scrap sales to be treated as business receipts taxable at 8 percent.

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Not claimed as expenditure-Books of account not rejected-No disallowance can be made-Additional payment for purchase of land-Deduction not claimed-No disallowance can be made. [S. 37(1), 145]

S. 40(a)(ia) : Amounts not deductible-Deduction at source Tax deducted from payments to contractor-Tax was deposited with interest for delay prior to competition of assessment-Disallowance is not justified. [S. 37(1), 201(IA)]

S. 37(1) : Business expenditure-Interest rate hedging contract-Underlying transaction was interest payable on loan-Loss or gain from interest rate swap arrangement is revenue.

S. 37(1) : Business expenditure-Provision for warranty claims-Estimate of provision on basis of past historical trend of warranty claims not reliable-Provision not allowable. [S. 145]

S. 37(1) : Business expenditure-Payment to sub-broker-Statement of third party was not confronted-No disallowance can be made.

S. 37(1) : Business expenditure-Capital or revenue-Market research expenses-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Prior period interest-Omission to book expenditure to closing work-in-progress rectified during year-No disallowance warranted. [S. 145]

S. 37(1) : Business expenditure-Employees’ Stock option plan-Loss on account of stock options-Allowable as deduction-Provision for gratuity-Allowable as deduction-Provision for approved gratuity fund-Allowable as deduction-Advance to employees welfare fund-Interest not disallowable. [S. 36(1)(iii), 40A(7), 43B]