S. 115JB : Book profit – Liabilities of gratuity and leave encashment -Notes appended to accounts- Should be adjusted while computing book profit- Adjustment in respect of prior period items comprising of impact of lease rent equalization and gratuity expenses of earlier years should be made, while computing book profit- Exempt income – Disallowance is not considered while computing book profit- Dividend income is exempt ,should be excluded in computing book profit .[ S. 10(34 )14A, 145 , R.8D AS. 15 ]

S. 115JB : Book profit – Sales tax subsidy- Capital in nature – A receipt exempt from tax under Income tax law, cannot be considered for purpose of computation of book profit- Sales tax subsidy received by assessee being capital in nature is to be reduced from book profit [ S.4, 28(i) ]

S. 92B : Transfer pricing – Safe Harbour Rules (5 per cent variation) – No TP adjustment could be made where arm’s length value of transactions as computed by TPO was within permitted range of variation of +/- 5 per cent of actual value of transaction. [ S.92C ]

S. 73 : Losses in speculation business – Business in trading in shares – Business loss -Delivery based transactions – Derivates transactions in futures and options segment- Explanation to section 73 does not differentiate between ‘delivery based transactions’ and ‘derivative transactions in F&O segment’ and same applies to entire business of purchase and sale of shares, whether such trading is delivery based or non-delivery based and, whether there is profit or loss from such business .[ S.28(i) ]

S. 57 : Income from other sources – Deductions – Interest paid on borrowed money- Advanced to earn interest – Though no interest is earned on money lent ,interest paid is allowable as deduction .[ S.56 , 57(iii) ]

S. 48 : Capital gains – Computation -VAT payment made by assessee at time of transfer of trademark is allowable as deduction [ S.45 48]

S. 43B : Deductions on actual payment -Employees’ share of contribution towards PF and ESI is paid before due date of filing return-No disallowances can be made [ S.139 (1) ]

S. 43A : Rate of exchange – Foreign currency – Depreciation – Forward foreign exchange contracts were taken for acquiring capital assets, profits/loss arising on settlement of such contracts had to be adjusted against cost of concerned capital asset in terms of S. 43A, and depreciation was to be allowed on such adjusted value of capital assets. [ S.32 ]

S. 43(6) : Written down value – Depreciation- Amalgamation- Written Down Value of assets in hands of amalgamated companies has to be calculated without considering unabsorbed depreciation of amalgamating companies for which set off was never allowed. [ S. 32(2) 72A ]

S.37(1): Business expenditure -Capital or revenue- Royalty paid for availing technical know-how and technical expertise and use of brand so owned by provider was allowed as revenue expenditure.