S. 45 : Capital gains-Charge of tax-Convertible preference shares-Preference shares transferred by original allottees-Shares redeemed and issue of equity shares by assessee against credit to security premium account-Gains on conversion of preference shares into equity shares accrue in hands of shareholder-Not in hands of assessee. [S. 2(47)]

S. 45 : Capital gains-Long-term capital gains from equity shares-Securities transaction tax paid-Entitle for exemption-Depreciation-Matter remanded. [S.10(38), 44, Sch.I.R.5(B)]

S.43B: Deductions on actual payment-Deduction allowed in the year in which the Assessee settles the outstanding electricity dues by way of payment out of the government grants, which is provided for the very purpose of aiding settlement.[S.145]

S.43B: Deductions on actual payment-Interest capitalised and not charged to profits-Work in progress-Disallowance could not be made. [S.37(1), 139(1)]

S. 43A : Rate of exchange-Foreign currency-Accounting Standard-Reinstatement of accounts-Loss is not claimed in earlier years-Gains not taxable as income of year.[S. 45, 145]

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Rent paid for residential accommodation excessive in comparison to market rate-Assessing officer’s reliance on material obtained from internet unreliable-Deletion of addition by commissioner (appeals) upheld.

S. 40(a)(ia): Amounts not deductible-Deduction at source-Disallowance of business expenditure-Transport-Revision of order by the tribunal-Held amendment was done to remove hardship caused to the assessee-Amendment not clarificatory in nature.

S. 40(a)(ii): Amounts not deductible-Rates or tax-Education cess-Not allowable.

S. 37(1): Business expenditure: Genuineness of job work charge-Produced formidable evidences to identify contractors as well as factum of incurring job work expenses, said expenses deserved to be allowed.[S.131(1)(d), 133(6), Order XVI, rule 19 of CPC, 1908]

S. 37(1) : Business expenditure-Assessee, following a consistent method of accounting, has offered EIS to tax on proportionate basis as and when they have accrued over tenure of loan and same has been accepted by revenue-in accordance with RBI norms as well as AS-9-Therefore, keeping in view principle of prudence as well as rule of consistency, no fault could be found with accounting methodology adopted by assessee to recognize revenue under securitization transactions. [S. 145]