S. 43(5) : Speculative transaction-Foreign exchange fluctuation-Hedging-loss arising on forwards contract cancelled by the assessee prior to the date of settlement-Not speculative-Allowable as business loss. [S. 28(i), 43(5)(a)]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors outstanding for more than three years-Credit not written off in assessee’s books-Not to be treated as income. [S. 4, 28 (i)]

S. 40(a)(ia): Amounts not deductible-Deduction at source-CIT(A)’s deletion of additions made by Assessing Officer for non-deduction of TDS on Labour Contract Expenses, accepting that subcontractors had declared and paid taxes on the income stands ratified.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission-Sale of prepaid sim card at discounted price to distributors-Difference between maximum retail price and discounted price not commission on which TDS is required-disallowance of discount not justified. [S. 194H]

S. 40(a)(ia): Amounts not deductible-Deduction at source-Payment of freight charges to transporters after obtaining PAN of transporters-No disallowance is called for.[S.194C(6), 194C(7)]

S. 40(a)(ia): Amounts not deductible-Deduction at source-Salary to partners-Not liable to deduction of tax at source-Deletion of disallowance is affirmed.[S. 15, Explanation 2,192 194D]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Additional evidence-NBFC had taken into account interest paid by the assessee while computing the income-Matter remanded to the file of the Assessing Officer. [Form No 26A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contractors/sub-contractors-Obtained PAN of transporters-Mere violation of provisions of s. 194C(7) would not attract disallowance. [S. 194C(6), 194C(7), R. 31A(4)(vi)]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Payment of licence fee to holding company-Assessee submitted Certificate from Chartered Accountant and return and computation of income of payee which Showed that payee had disclosed payment in its return and paid taxes thereon-Held, as per Indo-Israel DTAA Income in question not chargeable to tax in India in hands of Non-Resident-No disallowance can be made-DTAA-India-Israel.[S. 201]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Fes for technical services-Reimbursement of expenses made by assessee to its parent company for salary paid to expatriate employees, was in nature of salary cost and was subjected to TDS under section 192, such reimbursement could not be treated as FTS-DTAA-India-Japan [S. 9(1)(vii),192,195, Art. 12]