S.45: Capital gains-Non-Resident —Capital gains on sale of shares in Indian Company-Entitled to claim exemption – DTAA – India-Mauritius.[S. 112(1)(c) (iii), 147,R.115A, Art.13(4)]

S. 45: Capital gains 1Loss 1Short-term capital loss arising from cancellation of non-cumulative compulsory convertible preference shares –Disallowance of loss is proper.

S. 44C : Non-residents-Head office expenditure-Permanent establishment-Reimbursing head office towards subscription charges paid on its behalf —Not fees for technical services – DTAA-India-USA [S.9(1)(vii), Art. 12]

S.43B: Deductions on actual payment-Provision for leave encashment 1Claimed only of amounts actually paid during previous year 1Disallowance is deleted. [S. 145]

S. 43A : Rate of exchange-Foreign currency-Restatement of payables for capital assets-Matter remanded.

S. 42 :Business for prospecting-Mineral oil-Production Sharing Contracts with Government of India —Commissioner (Appeals) is justified in directing Assessing Officer to allow entire expenses claimed in C Block and K Block. [S. 37(1)]

S. 40A(3) :Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of sweets-Disallowance of 20 Per Cent. of payment is justified.[R.6D]

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Payment to American Bank for listing shares in Luxembourg Exchange 1Fees for technical services – Provisions of Double Taxation Avoidance Agreement is not considered —Matter remanded to the Asssessing Officer. [S.9((1)(vii)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Services rendered by parties-Bills were raised in next year-Payees were not identifiable-Voluntarily disallowed of expenses would not automatically enable Assessing Officer to treat it as assessee in default1Cannot be treated as assessee in default.[S. 201 (1), 201(IA)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Shortfall in deduction of tax at source —Disallowance is deleted-Proper course of action was proceeding under section 201[S. 201]