S.43CA: Transfer of assets-other than capital assets-full value of consideration-stock in trade-Agreement value-Stamp valuation-Registration agreement at a later date-Transaction was completed in an earlier year and offered to tax-Addition cannot be made in the year of registration. [S. 2(47)(v), S.50C, Transfer of Property Act, 1882, S.53A]
S. 43(5): Speculative transaction-Derivative trading loss-Set off against business income-Failure to produce broker’s note-The matter was remanded to the Assessing Officer to examine whether trades met requirements of Explanations 1 & 2 to section 43(5).[S. 73]
S. 41(1): Profits chargeable to tax-Remission or cessation of trading liability-Advances from customers against sales-shown as liabilities in its balance sheet-Not written off-Addition cannot be made.
S. 40A(3): Expenses or payments not deductible-Cash payments exceeding prescribed limits-Salary to employees-No finding that payment on particular date exceeded limit-Disallowance was deleted.
S. 40A(3): Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payment to supplier on Saturday at around 5:30 P.M. after closure of banking hours-Payment was made on a day when the bank was observing half-day working-Rule 6DD(j) could not be invoked-Disallowance upheld. [R.6DD (j)]
S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Cash payment to partners-No legal bar on cash payment to partners-Genuineness of payment was not doubted-Addition was deleted. [S.40A(b)(v)]
S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Long term capital gains-Commission payment to wife-Allowable as deduction. [S. 45, 48]
S. 40(a)(ia): Amounts not deductible-Deduction at source-Pre-EMI interest-Recipient had paid due tax-Matter remanded.
S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident –Commission-Non-resident carried out its activities outside India and income earned by it was not taxable in India-Not liable to deduct tax at source. [S. 9(1)(vi),9(1)(vii), 195]
S.37(1): Business expenditure-Bogus creditors-Trading in fabrics-Goods purchased were duly sold, and sales stood accepted; input of goods could not be doubted, and expenditure was to be treated as genuine, but 25 per cent of unverifiable purchases was disallowed. [S.41(1), 133(6)]