S. 48 : Capital gains-Cost of improvement of property-Merely making entries in books of account and producing deficient bills-Not sufficient to discharge initial burden of proof on assessee-Failing to establish genuineness of its claim–Claim is rejected. [S. 45]

S. 45 : Capital Gains-Alleged bogus long-term capital gains–Order giving effect to the order of Tribunal-Direction-AO wrongly considered deposits twice against sale of shares-AO has no jurisdiction to look into sale of other shares-Addition is deleted. [S. 254(1)]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-No addition can be made if AO has not brought any evidence to show that liability has ceased to exist–No additions can be made unless liability has not been written off in books of accounts.[S. 145]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Exceptions-Rule 6DD(k)-Payments during non-banking hours and at weekends for urgent hotel bookings and hotel staff refusing to accept cheque-AO has not considered the factual aspects -Matter remanded.[R. 6DD(k)]

S. 40(b)(ii) : Amounts not deductible–Partner–Remuneration-Partnership Deed mentioning maximum amount payable but payment to individual partner left undecided-Payments to be decided mutually between them- No disallowance made in preceding years-Principle of consistency applied. [S. 40(b)(v)]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident– Fees for Technical Services–Commission agents providing services outside India-Commission payments to non-residents not be treated as income deemed to accrue or arise in India-No disallowance could be made.

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident– Royalty-Payment for purchase of copyrighted software-Not royalty- ‘Royalty’ originally defined in double taxation avoidance agreement not amended-Assessee is not liable to deduct tax for payments made for purchase of off-the-shelf software. [S. 9(1)(vi), 195]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident– Interest – Royalty-Fes for technical services-DTAA-India-Switzerland. [S.9(1)(vi), 195, Art.14]

S. 37(1) : Business Expenditure–Advertisement expenses-Assessee not confronted with fact that notices to parties to whom expenses claimed to have been paid returned unserved-Matter Remanded–AO to decide afresh after confronting assessee and after hearing assessee.

S. 37(i) : Business Expenditure-Provisions for gratuity and leave encashment made with reasonable certainty on basis of independent actuarial valuation same is allowable. [S. 145]