S. 48 : Capital gains-Mode of Computation-Sale of shop-Cost of improvement-Construction cost of concrete bridge on culvert in front of shop-Allowable as deduction while computing capital gains. [S. 45]

S. 44BBA : Air craft-Non-residents-Computation-Air craft-Service tax-Statutory levy-it did not form part of receipts of assessee for purpose of section 44BBA.[S. 44BBBA(1)]

S. 40A(3) :Expenses or payments not deductible-Cash payments exceeding prescribed limits-Rent for four godowns in cash-Less than Rs 10,000 per day per person-No disallowance can be made-Matter remanded for verification-Electricity charges in cash to a State Government undertaking-Covered by exception carved out in rule 6DD(b)-No disallowance can be made. [R.6DD(b)]

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Royalty-Disallowance at rate of 0.2 percent of turnover is deleted-25% of other fees on ad-hoc basis-Order of CIT (A) directing Assessing Officer to allow payments after verifying and comparing similar payments made to other group companies is affirmed.

S.37(1): Business expenditure-Trip for dealers-Expenditure incurred by assessee under its trip scheme for its dealer for purpose of expanding assessee’s business by encouraging dealers and distributors to achieve a specific target of purchase being closely linked to assessee’s business activity is allowable expenditure.

S.37(1): Business expenditure-Decorative paint business-Capital or revenue-Extension of existing business-Revenue expenditure.

S.37(1): Business expenditure-New line of business-Capital or revenue-Furniture space, home improvement, kitchen space, bathroom space and acquisition of paints manufacturing company in Ethiopia being completely a new line of business and not an extension of existing business of assessee, is capital in nature.

S. 145 : Method of accounting – Project completion method – The Assessing Officer is not justified in rejecting the project completion method and estimating the income on percentage completion method- No addition can be made merely on the basis of sales shown in the GST return and Income tax return when the assessee is able to reconcile the difference . [ S. 4 ]

S. 270A:Penalty for under -reporting and misreporting of income – Penalty notice was only regarding underreporting of income- Penalty levied u for misreporting of income and under reporting – Not specifying the specific charge – Salary received is shown in the return – Penalty of Rs 44, 90,048 levied under section 270A(8) of the Act is deleted . [ S.139(9), 192 , 270A(8),270A(9)(e), 274 , Form No. 26AS ]

S.37(1): Business expenditure-Product development expenses-Allowable as revenue expenditure-Liquidated damages-As part of contractual obligation with its customers for delayed supply of goods or delayed completion of projects-Allowable as deduction-Employees’ contribution to PF and ESI would not be allowable in case of assessee-employer if it was remitted beyond due date prescribed under respective Acts.[S. 36(1)(va)]