S. 45(3) : Capital gains-Transfer of capital asset to firm-Transfer of land to partnership firm by way of capital contribution-Consideration to be taken as per section 45(3) and not as per section 50C of the Act-Cost of land-Interest paid-Additional evidence-Matter remanded-Compensation paid to a waiving of its absolute right-Added to cost of improvement. [S. 45, 48, 50C]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Loan-Never claimed as trading liability-Interest was claimed-Only interest can be added.

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Paid interest at rate of 18 per cent-Disallowed interest paid in excess of 12 percent-Disallowance is deleted. [S. 40A(2)(a), 40A(2)(b) , 40 (b)(iv)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Below taxable income-Disallowance is not justified-Payment to Truck owner-Matter remanded. [S.192, 194C(6)]

S. 37(1) : Business expenditure-Failed to produce end product qualitatively-Expenditure is not incurred for any infringement of law and rather, it was a by-product of commercial activity, said expenditure was not hit by Explanation 1 and section 37.

S.37(1) : Business expenditure-Fabricated agreement-Sales commission-Failure to provide supporting documents-Foreign travelling expenses of director–Sales promotion-Failure to produce evidence-Bogus expenditure-Disallowance is justified

S. 37(1) : Business expenditure-Abandoned project-Expansion of business by setting up a clinic is economically not viable-Loss is allowable as deduction-Capital expenditure-Constructing and running business of hospital is to be allowed as deduction under section 35AD-There is no condition of any date or year of commencement of specified business.[S.28(i) , 35AD]

S. 37(1) : Business expenditure-Pooja and festival-Not allowable as business expenditure-Depreciation-Additional depreciation-Not produced relevant material-Matter remanded to the Assessing Officer. [S. 32 (1)(iia)]

S.37(1) : Business expenditure-Business of trading of drugs and medicines-Commission paid two doctors-Not allowable as deduction.

S. 36(1)(iii) : Interest on borrowed capital-Interest paid at the rate of 13.50 per cent-Interest received at rate of 11.50 per cent-Disallowance of difference is justified.