S. 40(a)(i) : Amounts not deductible – Deduction at source-Non -resident-Payment for providing global support services-No technical Knowledge, experience, skill, know-how, or process made available to the assessee-Payment is not for technical services — Not iiableto deduct tax at Source. — No Disallowance -DTAA-India-Singapore [ S.9(1)(vii),195 ]

S. 37(1) : Business expenditure-Ad-hoc disallowance-Entertainment expenditure — Disallowance on ad hoc basis is held to be not proper.

S. 37(1) : Business expenditure-Expenditure incurred prior to setting up its business is held to be not allowable-Just because the Assessing Officer had accepted the contention of the assessee in the earlier year on a wrong footing that would not be a reason to accept the claim that rule of res judicata would apply, when the facts showed a totally different scenario.

S. 15 : Salaries-The Income-tax Act, 1961 will override the Companies Act- Even the illegal payment or the payment received by the assessee contrary to the provisions of the Companies Act by way of salary has to be assessed as income in the assessee’s hands provided the income was not recovered by the company. [S. 5]

S. 271(1)(c) : Penalty – Concealment – Inaccurate particulars – Show cause should mention specific charge – Word used in notice “or” and not “and” — Levy of penalty is held to be not valid [S.274 ]

S. 153C : Assessment – Income of any other person – Search -No incriminating material was found during course of search — Assessment is not valid.[ S.153A ]

S. 145A : Method of accounting – Valuation – Excise duty and taxes – Recorded purchases net of taxes —Not required to add excise duty and other taxes while valuing closing stock .[ Accounting Standard,2. ]

S.45: Capital gains — Business income —Shares and securities – Conversion of stock-in-trade into investment – Held to be valid -Gains assessable as capital gains. [ S.28(i) ]

S.45: Capital gains — Business income — Sale of shares- Principle of consistency- Preceding and subsequent years department , accepting income on account of sale of investments as short term capital gains- Sale consideration is assessable as capital gains .[ S.28(i) ]

S.45: Capital gains — Business income – Investment in shares -Consistently valuing investment at cost -Profits on sale of sale of investment is assessable as capital gains .[ S.28(i) ]