S. 50C : Capital gains – Full value of consideration – Stamp valuation – Conversion of agricultural land into residential plots – AO applied S. 50C – CIT(A) held that income in the nature of business income therefore, S.50C not applicable – Held, S. 45(2) not taken into consideration and therefore, matter remanded back to CIT(A). [S. 45(2)]

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits – payment exceeding Rs. 20000 – payment to truck driver who generally insist payment in cash – Held, AO did not doubt genuineness of the payment – Disallowance cannot be made .

S. 37(1) : Business expenditure -Capital or revenue – Trade mark expenses for use allowable as revenue expenses .

S.37(1):Business expenditure – Capital or revenue – Renovation of leased office premises is revenue expenses allowable [S.31]

S. 37(1) : Business expenditure – Discount and commission – In absence of full details, entire payment cannot be allowed – cash discount of 1% to keep the buyer in good humor allowable in the interest of justice.

S. 37(1) : Business expenditure – Corporate social responsibility – peripheral development expenses and community development expenses allowable.

S. 37(1) : Business expenditure – Accrued or contingent liability – provision towards expenditure for closure of mines being merely a statutory provision relating to operation of mine, no deduction for proportionate expenditure to the period for which mines operated allowable.

S. 37(1) : Business expenditure – Accrued or contingent liability – provision for post- retirement medical benefits, future encashment leave and long service award based on actuarial valuation is allowable.

S.11: Property held for charitable purposes -Accumulation of income — Allowable at fifteen per cent. on gross receipts

S. 2(22)(e):Deemed dividend- account showing movement of funds both ways between a debtor and a creditor – Held, current account transaction and therefore, S. 2(22)(e) would not apply.