S. 55 : Capital gains – Cost of improvement – Cost of acquisition -Tenancy rights- Acquired tenancy rights by inheritance i.e. from his father before 1-4-1981, in view of provisions of section 49(1)(iii), benefit of indexation of cost of acquisition could not be granted while computing capital gain arising from sale of said rights- Cost to be taken as nil, as the assessee has not paid any purchase price for acquisition of the same . [ S. 48 ,49(1)(iii), 55 (2)(b), 55(3) ]

S. 43(5) : Speculative transaction -Damages – Not honouring the commitment to take delivery consequent upon price of palm oil declining- Damages paid cannot be disallowed as speculative loss -Allowable as business loss .[ S.28(i) ]

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Liability is not written of in books of account – Addition cannot be made as cessation of liability .

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -Payments to farmers is covered by exception- No disallowance can be made .[ R.6DD ( e) (i)]

S.40(a)(iib):Amounts not deductible- Gallonage fee, licence fee, shop rental and surcharge on sales tax- Issue being debatable matter was remanded to CIT (A).

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident – Fes for technical services -Service of market survey rendered by foreign agents is only incidental to function of commission agent, it cannot be regarded as FTS- Not liable to deduct tax at source [ S.9(1)(vii), 40(a)(ia),195 ]

S. 36(1)(va) :Contribution approved gratuity fund -Employer’s contribution is allowable as deduction if the payment is made before due date of filing of return u/s 139(1)- Deduction in respect of employees’ contribution to ESI and EPF is available only if same is paid within due date as specified under relevant statutes.[ S. 2(24)(x), 43B , 139(1) ]

S. 36(1)(iii) :Interest on borrowed capital -Construction business-Stock in trade – Interest paid on borrowings for purchase land -Allowable as revenue expenditure.

S. 32 : Depreciation – Charitable Trust -Depreciation is allowable Computation provision did not discriminate between a charitable Trust and other assesses.[ S.11, 12A, 263 ]

S.32: Depreciation- Stay order from Court- Factory could not run due to stay order of Court- Depreciation cannot be disallowed.