S. 50C : Capital gains-Full value of consideration-Stamp valuation Property not freehold property but occupied by tenants and court cases to get premises vacated pending—Kanpur Development Authority issuing letters to assessee proposing to take over certain portion of his property in connection with road widening— Addition on account of difference in stamp duty and sale deed is not justified. [S. 45]

S. 43B : Deductions on actual payment – Provision for leave encashment- Not allowable unless the amount is actually paid.

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Amount not claimed as expenditure-No disallowance can be made-Exemption certificate for non deduction of tax at source- Once certificate has been issued no disallowances can be made- If income is not chargeable to tax in India-No disallowance can be made- Once it is held that income is not chargeable to tax in India, no disallowance can be made. [S. 195, 197]

S. 37(1) : Business expenditure — Provision for non-moving inventory — consistent treatment from year to year in return, allowable for deduction. [S. 145 ]

S. 37(1) : Business expenditure—Provision for warranty expenses — provision made based on transactions carried out in preceding three years on scientific basis and method consistently followed in past such expenditure is allowable. [S. 145]

S. 37(1) : Business expenditure-Capitalised in the books of account as work in progress-Revised return claiming as allowable revenue expenditure -Held to be allowable. [S. 145]

S. 37(1) : Business expenditure –Brand building – Advertisement expenses- Held to be revenue expenditure.

S. 36(1)(vii) : Bad Debt — Write-off in books of account sufficient compliance, no further requirement to prove debt has become bad.

S. 36(1)(iv) : Contribution to recognized provident fund– Amalgamated company -Matter remanded. [S. 37(1)]

S. 32 : Depreciation-Pollution control equipment–Failure of the authorities to examine the nature of equipment–Matter remanded.