S. 45 : Capital gains-Year of assessability-Contingent consideration-Accrual of income–liable to tax only on the consideration actually received during the year, and not on the entire amount mentioned in the sale deed. [S. 2(47); Transfer of Property Act, 1882, S. 53A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Amendment by Finance Act, 2014 restricting disallowance to 30 per cent held to be prospective-Assessee’s default, the entire expenditure was to be disallowed, and the benefit of the reduced 30 per cent disallowance was not available-Order of Tribunal set aside. [S. 260A]

S. 37(1) : Business expenditure-Quantum of expenditure irrelevant-Renovation of schools and temples-Expenditure incurred out of business exigency to maintain good relations with local villagers for smooth conduct of business is allowable as revenue expenditure, where no capital asset is acquired by the assessee.[S. 260A]

S. 37(1): Business expenditure-Capital or revenue-Compensatory afforestation-Contribution to Compensatory Afforestation Fund (CAF) is revenue expenditure, not capital.c

S. 37(1) : Business expenditure –Business loss-Write-off of a trade advance based on commercial expediency is an allowable deduction. [S. 28(i), 28(iv), 260A]

S. 36(1)(vii) : Bad debt-Provision for bad and doubtful debts-Scheduled bank-Bad debt written off to be reduced by opening balance of provision, not current year’s provision; deduction for current provision also allowable. [S. 36(2)(v) 36(1)(viia)]

S. 36(1)(iii) :Interest on borrowed capital-Mixed funds-Interest-free advances are deemed to be given out of interest-free funds-Order of Tribunal deleting the disallowance is affirmed.[S. 260A]

S. 36(1)(iii) : Interest on borrowed capital-Interest-free advances-Mixed funds-Where assessee possessed sufficient interest-free funds from sundry creditors, it is presumed that advances are made from such funds; disallowance of interest deleted. [S. 260A]

S. 32 : Depreciation-Lease transactions-For an assessee in the business of leasing, letting out an owned asset constitutes its use for the purpose of business, entitling it to depreciation.[S. 260A]

S. 32 : Depreciation-Optional claim-Claim for depreciation was optional prior to insertion of Explanation 5 to Section 32(1)-Order of Tribunal affirmed. [S. 260A]