S. 50B : Capital gains – Slump sale – Assets transferred to Subsidiary- Allotment of Shares — Scheme approved by High Court — Not slump sale for purposes of capital gains Tax — The transfer, pursuant to approval of a scheme of arrangement, was not a contractual transfer, but a statutorily approved transfer and could not be brought within the definition of the word sale -Claim which was not raised in return or revised return – Appellate authorities must consider the claim if facts are on record – No estoppel in taxation law – [ S.2(42C) 45 , 54EC , Companies Act , S. 393, 394, Transfer of property Act, 1882 S.118 , Sale of Goods Act , 1930 , S.2(10) ]

S.45 : Capital gains —Block of assets – Land and building —Valued separately — Held to be justified [ S. 2(11) ]

S. 43D : Public financial institutions – Co-Operative Bank -Real income — Interest on non-performing assets cannot be taxed on accrual basis- Amendment should apply to pending matters [ S.80P(4) 145 ]

S. 43(5) : Speculative transaction -Exporter of cotton entering into forward contracts — Loss incurred is not a loss in speculative transaction —Entitled to deduction of loss [ S.28 (i ) ]

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -Banking facilities available — No Evidence of compelling circumstances justifying payments — Disallowance justified. [ R.6DD ]

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – No reasonable cause shown – Disallowance is held to be justified .

S.37(1 ) : Business expenditure — Service charges paid to employees in terms of agreement entered into under Industrial Disputes Act — Held to be allowable .[ Industrial Disputes Act, 1947, S 18(1) ]

S.37(1):Business expenditure — Capital or revenue- Fluctuation in foreign exchange rates – Loan to purchase plant and machinery — Increase in liability – Capital expenditure.

S.37(1): Business expenditure — Bank — Purchase and sale of securities — Assessable as business income and not as income from other sources -Interest paid allowable as deduction [ S. 28(i), 36(i) (iii), 56 ]

S.32 : Depreciation — Unabsorbed depreciation — Carry forward and set off —Amendment ,Finance Act of 2001- Circular No. 14 of 2001 dt.9 -11 -2001- No time limit for carry forward and set off [ S.32(2) ]