S. 45(4) : Capital gains – Distribution of capital asset – Retirement of partner- Amount received by a partner on her retirement from a partnership firm is not liable to capital gain tax. [S. 45]

S. 45 : Capital gains-Transfer-Joint Development agreement (JDA)-In the absence of registration agreement did not fall under S.53A of the transfer of property Act–Not liable to capital gains tax [S. 2(47)(v) Transfer of Property Act, 1882 S. 53A]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Timber business-Discontinuation of business for more than 10 years-Showing the creditors- Application of common sense principles-Burden of proof on assessee to show subsistence of liability-Liable to be taxed as profits of business.

S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits – Purchase of jewellery – failure to demonstrate a situation which compelled to make payment in cash- Disallowance is held to be justified.

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable–Salaries to directors- Preceding year was accepted by revenue–No extraordinary increase in salary-Disallowance is held to be not justified.

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident–Payments made to foreign law firms as consultancy fee which did not have any fixed base in India-Not taxable in India-Not liable to deduct tax at source.[S. 9(1)(i), 195]

S. 37(1) : Business expenditure–Non-compete fee paid by assessee to founder of transferor company constituted business expenditure.

S. 37(1) : Business expenditure-Employee Stock option Plan (ESOP)-Expenditure incurred on allotment of shares under Employee Stock option Plan (ESOP) is held to be allowable as business expenditure.

S. 37(1) : Business expenditure–Year of deduction-Slum development expenditure-Contingent upon authority giving vacant possession of plot-Authority was unable to hand over vacant possession of land-Disallowance of expenditure is held to be justified. [S. 145]

S. 36(1)(iii) : Interest on borrowed capital-Investment in share capital of sister concern, with a view to earn dividend income-Expenditure incurred is held to be allowable as deduction .