S. 44BB : Mineral Oils – Computation – Income deemed to accrue or arise in India- Royalties and fees for technical services -Specific provision is applicable and provision of S.44DA is not applicable- Article 12 of OECD Model Convention [ S.9(1)(vii), 44DA ]

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Benefit from Pre-payment of deferred Sales Tax Liability cannot be assessed u/s 41(1).

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Creditors were paid in subsequent years hence addition was held to be not justified .

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Deferral sales tax Scheme -Premature payment in terms of net present value (NPV) of same cannot be assessed as remission or cessation of liability [ S.43B ]

S.40A(3):Amounts not deductible-Hotel and restaurant bills –Each payment is less than Rs 20,000/ hence disallowance was held to be not valid .

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -Amount being small and genuineness of payment was not doubted no disallowance can be made .

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Rent paid to guest house – Payment being comparable no disallowance can be made .

S. 40(b)(i) : Amounts not deductible – Partner – Book profit- Once cash advances was assessed as business income the same has to be taken in to consideration for the purpose of book profit [ S.28(i), 133A ]

S.40(a)(ia):Amounts not deductible – Deduction at source – Transaction charges paid by stock broker cannot be held to be fees for technical services hence not liable to deduct tax at source. No disallowance can be made. [ S.194J ]

S. 40(a)(ii) : Amounts not deductible – Rates or tax – Education Cess was held to be not allowable as business expenditure [ S. 37(1) ]