S. 45 : Capital gains-Business income-Sale of flats-Intention to hold the same as investment-Income chargeable to tax as capital gains and not business income-Unsold flat generating rental income cannot be treated as stock-in-trade-Res Judicata-No material changes in facts and law-Revenue is not permitted to take different view in subsequent years. [S. 28(i)]

S.43B : Deductions on actual payment-Provision for leave encashment-Disallowance is upheld.[S.43B(f)]

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Tax includes Cess-Education cess is not deductible.

S.37(1) : Business expenditure-Interest paid on excess refund of duty drawback-Not penalty or fine-Allowable as deduction. [S. 37, Expln. 1,145, Customs And Central Excise Duties Drawback Rules, 2017, R. 17]

S. 36(1)(iii) : Interest on borrowed capital-Investments in special purpose vehicles-Interest is allowed as deduction-Bad debt-Additional claim first time in the course of assessment-Allowed as deduction.[S. 36(1)(vii), 251]

S. 32 : Depreciation-Rate of depreciation-Computer servers, software and networking equipment-Depreciation is allowable at 60 Per Cent.

S.14A : Disallowance of expenditure-Exempt income-Interest-Sufficient non interest bearing funds-Administrative expenses the Assessing Officer is directed to restrict the disallowance under rule 8D(2)(iii) of the Rules to the extent of 0.5 per cent. of the average of exempt income yielding investments. [S. 36(1)(iii), R. 8D(2)(iii)]

S.14A : Disallowance of expenditure-Exempt income-Interest expenses-Not maintaining separate books for investments-Disallowance by the Assessing Officer is affirmed. [R.6D]

S. 11 : Property held for charitable purposes-Income applied to charitable purposes more than receipts of year-Excess applied can be carried forward to succeeding year-Plant and machinery-Depreciation is allowed.[S. 32]

S. 10AA : Special Economic Zones-Turnover-Expenses incurred in foreign currency for providing technical services outside India-Not to be excluded from export turnover.