S. 45 : Capital gains – Business income – Expenditure – Taxable as capital gains and not as business income .[ S.2(13) ,28(i) , 48 ]

S. 44AD :Presumptive taxation-Cash flow statement – Most of applications of income directly linked to business of assessee – Addition not warranted

S. 40(b)(iv) : Amounts not deductible – Partner – Interest -Partners Declaring interest in their returns and assessments completed in their hands — Double taxation of same income both in hands of partners as well as firm – Interest payment is held to be allowable .

S. 37(1) : Business expenditure –Self made vouchers – Ad-hoc disallowance of 15% of expenditure is based on surmises and conjectures – Held to be not valid .

S. 37(1) : Business expenditure – Disallowance is restricted to 10 % as against 20% disallowance affirmed by the CIT (A) .

S. 36(1)(iii) :Interest on borrowed capital -Onus on assessee to establish that interest-bearing loan not used to extend interest-free loan — Matter remanded.

S.28(i): Business Loss — Import duty —Non-payment of duty would have resulted in substantial losses for assessee and damaged reputation in market — Loss is allowable as business Loss out of commercial expediency .[ S.37(i) ]

S. 14A : Disallowance of expenditure – Exempt income – Not recording of satisfaction – No disallowance could be made- Period during which the lockdown was in force shall stand excluded for the purpose of working out the time limit for pronouncement of orders, as envisaged in rule 34(5) of the Income-tax (Appellate Tribunal) Rules, 1963 . .[ . S.254(1), R.8D ]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions –Excess amount charged refunded – Neither a case of violation or diversion of fund – Entitle to exemption -Application of income- Normal commercial principle should be applied [ S.11, 12A, 13(1)( c ), 13(2)(g), 144, 145 ]

S. 12AA : Procedure for registration –Trust or institution- Registered address- Matter remanded [ S.80G]