S. 45: Capital gains-Capital loss-Assessee, a Foreign Portfolio Investor incorporated in United Kingdom-entered into Forward Foreign Exchange contracts (FCC) with a bank to hedge amounts invested in Indian securities-loss incurred on rollover/cancellation of FCC was in nature of short-term capital loss eligible for carry forward under head ‘capital gains’. [S.74]

S. 44C: Non-residents-Head office expenditure-Double taxation relief-Article 7(3) of the DTAA between India and UAE-Asessee claimed deduction u/s. 44C-AO allowed only 5% of the adjusted total income as deduction-Held, Art. 7(3) cannot be applied retrospectively-Held, deduction allowed without imposing restriction u/s. 44C-Expenditure incurred outside India exclusively for operations of Indian branches would not fall within ambit of section 44C hence allowable in full-DTAA-India-Dubai [S. 90,Art.7(3), 25(1)]

S.43CA: Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value-Stamp valuation-Date of agreement fixing value of consideration and date of registration of such transfer not same-Stamp duty value as on date of agreement for sale should be considered as full value of consideration for purpose of computing profits and gains from transfer of flat-Addition is deleted. [S. 45]

S. 43B: Interest tax liability for AYs:1993-94 to 1997-98 arose to assessee during relevant assessment year 2018-19 by way of order giving effect to order of High Court-liability was discharged by assessee during relevant year allowable as business expenditure.

S. 40A(3) :Expenses or payments not deductible-Cash payments exceeding prescribed limits-Business expediency-If the payment is necessary for business operations and is not made with fraudulent intent, disallowance u/s. 40A(3) may not be required, even if the payment exceeds the prescribed limit.

S. 40(a)(ia): Amounts not deductible-Deduction at source-Books of Accounts rejected-Separate addition under 40(a)(ia) not valid. Disputed income under litigation-Shown as other income-Cannot be included in turnover when books are rejected-Income does not accrue until litigation is finally terminated, especially if liability is not admitted by the other party. [S. 4, 5, 144 145]

S. 40(a)(ia): Amounts not deductible-Deduction at source-Interest, etc., paid to a resident without deduction of tax at source-Non-furnishing of Form 15G/15H-Form filed before the Tribunal-Matter remanded to the Assessing Officer for limited purpose of verification. [Form 15G, 15H]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Depreciation-Fixed asset-Capitalised the expenditure-Disallowance is deleted. [S. 32]

S.37(1): Business expenditure-Club membership fees-Allowable as business expenditure.

S. 36(1)(va): Any sum received from employees-Assessee maintain separate books for PF contributions-Credited it on real time basis-Deduction cannot be denied-NPS contributions not deposited within the due date of filing of Return-Cannot be claimed as a deduction in that year.[S. 2(24)(x)]