S. 44D : Foreign companies-French airlines-Shipping, inland waterways transport and air transport-Technical services-Handling services-Pool member and providing service in that capacity to guest members would come under purview of Article 8(2) of DTAA between India and France-DTAA-India-France-Addition confirmed by the CIT(A) was deleted. [S. 9(1)(vii), 90, 115A, Art. 7, 8(2)]

S. 43B : Deductions on actual payment-VAT and excise duty-Closing balance of earlier years cannot be added back.

S. 43(5) : Speculative transaction-Forward contract-Hedging currency-loss due to fluctuation in foreign exchange-Not speculative-Allowable as business loss. [S. 28(i), 37(1)]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Advance cash was returned back-Matter remanded.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest payment-Second proviso to section 40(a)(ia) coming into effect from 01-04-2012 by Finance Act, 2012, disallowance was to be deleted and, matter was to be remanded back for disposal afresh. [S. 201(1)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission to foreign parties-Short deduction of tax at source-No disallowance can be made-Model OECD Convention-Art. 7. [S. 9(1)(i)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Non-resident-Amendment made by Finance Act (No. 2) to section 40(a)(ia) with effect from 01-04-2015, is curative in nature and thus said provision has to be applied retrospectively.

S. 37(1) : Business expenditure-Capital or revenue-Technical know-how-For upgrading engines of vehicles so as to make emission normal and also to make vehicles eco-friendly-Capital in nature-Entitle depreciation. [S. 32]

S. 37(1) : Business expenditure-Capital or revenue-Expenditure towards joint venture-Held to be capital in nature-Travel expenses-mergers and acquisitions of entities engaged in similar business-Held to be capital in nature-Consultancy fees-For developing new range of tractors and also upgradation of existing range of tractors, said expenditure was to be treated as capital in nature-Staff cost revenue nature.

S. 37(1) : Business expenditure-Provision for wages-Pending labour demand regarding incremental wages-Held to be allowable Capital or revenue-Premium on redemption of foreign currency convertible Bonds-Prorate premium payable on redemption of foreign currency convertible Bonds-Allowable as deduction-Issue of foreign currency convertible bonds-Held to be allowable as revenue expenditure-Discount given on issue of employee stock ownership plan-Allowable as business expenditure. Employee’ welfare expenses-Amount paid to an educational institution where children of assessee’s employees were taking education-Held to be allowable as revenue expenditure-Provision made towards warranty-Held to be allowable-Discount on issue of employee stock ownership plan held to be allowable-Professional fee towards acquisition-Entities which did not materialize was to be allowed as revenue expenditure-Abandoned project-Allowable as revenue expenditure.