S. 45 : Capital gains-Property converted into stock in trade-Sale agreement entered into-General power of attorney-Sale is not registered-Sale is not complete on handing over of possession-Sale cannot be chargeable to capital gains tax. [S. 2(47)(v) 28(i), 153C, Transfer of Property Act,1882, S. 53A]

S. 45 : Capital gains-Search-Land dealings-Agreement for sale of land-Benamidar-Protective assessment-Executor of sale, and beneficiary of sale proceeds and other sellers were puppets controlled by assessee-Capital gains taxable in the hands of assessee. [S. 2(14), 2(47), 132,153C, 292C]

S. 44AD :Presumptive basis-Incentive earned for achieving the sales target as per franchise agreement-Part of business turnover-Includible in turnover business-Not chargeable to tax under the head income from other sources-Reimbursement of expenses-Failure to file evidence-Income from house property-Not includible as gross receipts-Interest on fixed deposit-Income from other sources-Cannot be included in business receipts for estimating net profit under section. 44AD. [S. 22, 56, 194IB]

S. 40(a)(ia): Amounts not deductible-Deduction at source-Tax paid before due date of filing of return though beyond stipulated time limit-Cannot be disallowed. [S. 139(1)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Certificate by Chartered Accountant-Recipient included the income in their assessment-Certificate in Form No 26A is furnished-Disallowance is deleted-Cannot be treated as an assessee in default. [S. 194A, 201(1)]

S. 37(1): Business expenditure-Bogus sub-Contractor-10 percent disallowance is confirmed-Reassessment is affirmed. [S. 147, 148]

S. 37(1) : Business expenditure-Donation to Red Cross Society and Japan relief Fund-Nature of gift cannot be allowed as deduction under section 37(1). [S. 80G]

S. 37(1): Business expenditure-Expenditure on marketing survey-Statement was retracted-Cross examination is not provided-Allowable as deduction. [S. 133A]

S. 35 : Expenditure on scientific research-Accommodation entries-Survey-Office bearers of done society admitted that in the course of survey and also before Settlement Commission that they are providing accommodation entries by way of bogus donations in an organised manner-Not entitle to deduction-Notice issued under section 143(2) is valid-Reassessment is valid. [S. 35(1)(ii), 133A,143(2), 147, 148]

S. 24 : Income from house property-Deductions-Commercial property-Property in respect of which assessee claimed interest under section 24(b) was only a commercial property-Restriction on deduction as provided in 2nd proviso to section 24(b) would not be applicable. [S. 22, 24(b), 71B, 143(1), 154]