S. 48 : Capital gains–Computation -Indexed cost of improvement-documentary evidence to prove quantum of expenditure incurred on improvement was not furnished -Disallowance is held to be justified. [S. 45, 54]

S. 45 : Capital gains-Transfer of development right-Handing over possession of Land -Unregistered agreement-No valid transfer– Not liable to capital gains tax. [S.2 (47)(v)]

S. 45 : Capital gains-Business income–Investment in shares-Earlier years the transactions of sale of shares were accepted as capital gains-Current year short-term capital gains arising from share transaction could not be assessed as business income. [S. 28(i)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Maistries-leaders of shipping labour groups- Payment to shipping labour group leaders is not liable to deduct tax at source–No disallowances can be made. [S. 194C]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-MIS Services, Cost Allocation, Corporate Allocation Charges and Legal Expenses -Since services could not be said to have made available technical skill, knowledge and know-how in legal sense of ‘make available’ clause- Not liable to deduct tax bat source -DTAA-India -USA [ S. 9(1)(vii), 195, Art. 12]

S. 40(a)(ia) : Amounts not deductible-Deduction at source–Clearing and forwarding charges-Reimbursement of expenses- Agreement was not furnished–Matter remanded. [S. 172, 194C]

S. 37(1) : Business expenditure-Warranty expenses-In terms of tripartite agreement entered into between assessee, a Russian company and Indian Air Force, assessee had to supply engines of aircrafts to Indian Air Force manufactured by Rusian company-warranty in respect of engines so supplied was responsibility of assessee for a specified period- Warranty expenses is held to be allowable.

S. 37(1) : Business expenditure-Sales promotion expenses-When all relevant details for sales promotion expenses was filed, without verifying veracity of said expenses under S 133(6) and 131 , disallowance cannot be made. [S. 131, 133(6)]

S. 37(1) : Business expenditure-Commission–Prior period expenditure -Expenditure for earlier year in its ledger account in respect of commission pertaining to current year-Merely on the basis of entries in books of account disallowance cannot be made . [S. 145]

S. 37(1) : Business expenditure-Provision for development expenses -Consistent accounting pattern-Held to be allowable. [S. 145]