S. 68 : Cash credits-Share application money-Addition was deleted on merits-Reassessment valid. [S. 68, 147, 148]

S. 45 : Capital gains-Transfer-Redemption-Indexation-Redemption of preference shares is a sale and also transfer of relinquishment of asset by share holder-Assessable as capital gains and not as income from other sources. [S. 2(47), 48, 56]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Bank guarantee commission and credit card commission-Deducted by Banks-No disallowance can be made.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Non-Resident rendering services of Information Technology infrastructure-Royalty-Liable to deduct tax at source-Disallowance is justified-DTAA-India-Portugal. [S. 9(1)(vi)]

S. 37(1) : Business expenditure-Interest-Failure to prove for the purpose of business-Disallowance is justified.

S. 37(1) : Business expenditure-Unrealised export sales and foreign exchange loss-Unbilled revenue brought into India lower than sum reduced b Assessing Officer-Allowable as deduction.

S. 37(1) : Business expenditure-Taxes and rates-Interest on delayed payment of tax deducted at source-Not penalty-Compensatory in nature-cannot be treated as tax-Allowable as deduction-Repairs and maintenance-Ad-hoc disallowance is not justified. [S. 40(a)(ii)]

S. 37(1) : Business expenditure-Capital or revenue-Bad debts-Security deposits to land lord-Written off as revenue expenditure-Allowable as revenue expenditure. [S. 36(1)(vii)]

S. 37(1) : Business expenditure-Bogus purchases-Purchase of diamond though commission agent-Identity and genuineness is established-Deletion of addition is held to be proper.

S. 37(1) : Business expenditure-Education Cess-Additional grounds admitted-Allowable as deduction. [S. 40(a)(ii), 254(1)]