S.40(a)(ia):Amounts not deductible – Deduction at source – Payee in its return disclosing payment received, no disallowance can be made for failure to deduct tax at source – Second proviso to S.40(a) of the Act is to be read as applicable with retrospective effect.

S.37(1): Business expenditure- Lease hold premises – Repairs and maintenance – Order of CIT(A) lacked quasi -Judicial investigation and analysis fair to both the assessee as well as the department- Repair and maintenance expenses and business promotion expenses- Matter was remanded to CIT(A) for fresh adjudication .

S. 36(1)(iii) :Interest on borrowed capital – Own funds more than investment- Disallowance of interest cannot be made.

S.32: Depreciation — Additional depreciation — Lab Equipment and Electrical Items is essential for manufacturing process which is entitled to additional depreciation [ S.32(1)(iii) ]

S. 32 : Depreciation -Motor Car — Company purchasing car in name of its manager which is used for the purpose of its business is entitle to depreciation.

S.28(i):Business loss — Fluctuation in foreign exchange loss — Derivative Contracts —Actual contract for sale of Merchandise is not speculative transaction is deductible.[ S.43(5) ]

S.28(1): Business loss — Forward and derivative contracts — gains on account of foreign exchange difference — Marked to Market Loss-Matter remanded for actual verification of entries in the books of account . [ S.37(1) ]

S. 10A : Free trade zone – Communication charges and travelling and conveyance expenses is to be excludible both from export turnover and total turnover – Interest earned on fixed deposits is part of business income which is deductible.

S. 275 : Penalty – Bar of limitation – Takes or accepts any loan or deposit – Repayment of loan or deposit – Limitation period of six months to be reckoned from the end of month initiation of the penalty proceedings by JCIT and not from the date of assessment order – Penalty u/s2771D is independent under assessment .-JCIT is only authority competent to initiate proceedings and impose penalty – Not barred by limitation .[ S. 269SS, 269T,271D, 271E ]

S.260A: Appeal – – High Court – Inter department litigation-Clearance from the Committee on dispute – Order of High Court directing the CIT to approach the High Powered Committee for clearance of Committee on Dispute for filing appeal before the High court is set aside and matter remanded to High Court for deciding the appeal on merits .