S. 48 : Capital gains-Computation-Transfer of consideration to EMR Mauritius for benefit of certain employees and ex-employees of seller company-Not allowable as deduction. [S. 45]

S. 37(1) : Business expenditure-Foreign travel expenses-promotion of business-legal and professional fees-Expenditure for replacement of part of machine-Held to be allowable as business expenditure.

S. 37(1) : Business expenditure-Miscellaneous expenses-Adhoc disallowance-Not substantiated by producing evidence-Ad hoc disallowance is held to be justified.

S. 32 : Depreciation-Assets leased to three companies-Search- Assets were not found-Transaction genuine or not is a question of fact-Order of Tribunal allowing the depreciation is affirmed. [S. 132]

S. 28(i) : Business Loss-Foreign exchange fluctuation loss-Mark to Market basis -SLP of revenue is dismissed. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income-Disallowance is held to be justified even though the assessee has not earned any exempt income. [R. 8D]

S. 10(23C) : Educational institution-Educational college for intermediate, degree and post-graduation courses for women-Erroneous reading of assessment year by prescribed authority in form 56D – Rejection application was set aside . [S. 10(23C)(vi), Art. 226]

S. 5 : Scope of total income-Wheeling charges-Uncertainty of receiving-Method of accounting-Not assessable as income for the relevant year. [S.4, 145]

S. 2(22)(e) : Dividend-Deemed dividend-Loan-Not share holder of the Company-Not assessable as deemed dividend.

S. 2(14)(iii) : Capital asset-Agricultural land- land was situated 40 k.m. away from municipality – Agricultural activities were carried out in land, there were standing banana crops as well as coconut trees, etc.-Approval from Joint Director, Directorate of Town and Country Planning [‘DTCP’] for conversion of land for non-agricultural purpose prior to execution of sale deed-Not liable to capital gain tax. [S. 45]