S. 43(5) : Speculative transaction-Raising funds through foreign currency convertible bonds for manufacturing-Entering into hedging transaction to cover expected loss from fluctuation of foreign currency-Commercial expediency-Transaction incidental to business-Loss allowable. [S. 37(1)]

S. 43(5) : Speculative transaction-Derivative trading-Manufacturing of yarn-Forex derivative transactions through its bankers to hedge its foreign currency risk-Not speculative-Allowable as business loss. [S. 28(i), 37(i).]

S. 43(1): Actual cost-Subsidy for industrialization of backward state-Capital Nature-Not to be reduced from the asset cost. [Expln. 10].

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Provision for gratuity and leave encashment written back-Expenses not allowed in earlier year-Amount write back cannot be taxed.

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Amounts shown as sundry creditors-Deletion of addition is justified. [S. 37(1)]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Transhipment charges-Outstanding for three years-Offered to tax in 2011-12-Justified in deleting. [S. 145]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Outstanding liability-Addition is not justified.

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Profits on buy-back of foreign currency convertible bonds-Furnishing certificate of Chartered Accountant-No part of proceeds utilised towards non-capital expenditure-Addition is not justified. [S. 28(iv)]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Outstanding sundry creditors shown in the books-Addition cannot be made.

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Waiver of interest-Estimate made-No proof for waiver of interest-Deletion of addition is affirmed.