S.54F : Capital gains- Investment in a residential house -No clarity as regards date of utilisation of amounts and when assessee incurred expenditure for registration of property — Matter remanded to Assessing Officer for examination [ S.45 ]

S. 54 : Capital gains – Profit on sale of property used for residence – All flats received from builder under joint development agreement situated in same premises —Entitled to exemption on entire built-up area received [ S. 2(47)(v), 45, 54F ]

S.48 : Capital Gains — Computation – Cost of acquisition — Shares — Interest on investment disallowed will be part of cost of acquisition of shares for determining profit on sale of shares [ S.45, 57 ]

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Rent paid to daughter of managing Director- Matter remanded to the Assessing Officer [ S.40A(2)(b) ]

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable -775 Per Cent. increase in remuneration to Directors —Assessing Officer not pointing out comparables to demonstrate that salary paid to directors was excessive — No evasion of tax – CBDT circular No. 6-P dated July 6, 1968 is binding – No disallowance can be made [ S.40A(2)(b) ]

S.37(1):Business expenditure —Proportionate drop in vehicle maintenance account in profit and loss statement — Addition not tenable.

S. 36(1)(iii) :Interest on borrowed capital -Borrowed funds used for investment in shares for business purposes —Allowable as deduction [ S.37 (1) ]

S. 35 : Scientific research – Approval by department of Scientific and Industrial Research — No provision at relevant time requiring approval of expenses by department of scientific and industrial research – Amendment is not retrospective as it introduces additional condition and affects substantive rights of assessee – Delay of filing of appeal due to Covid- 19 Pandemic , was condoned . [ S. 35(2AB, 37 (1) )

S. 28(i) : Business loss – Goods lost due to burning — Estimate made per consumption and production of goods accurate — Addition made on estimate basis rejected . [ S.143 (3) ]

S .14A : Disallowance of expenditure – Exempt income – Not recording of satisfaction – Disallowance was restricted to sum claimed by assessee .[ R.8D ]