S. 45 : Capital gains-General power of Attorney-Mere non production of the owner of the property could not, per se, cast liability of tax upon the assessee-The assessee has discharged the onus upon her-General power of Attorney has no right in the property and the General power of Attorney holder is only the agent under the Contract Act, the addition made for the long term capital gain on the assessee (GPA) deleted. [S. 148]

S. 44C : Non-residents-Head office expenditure-Allowable whether or not any amount is debited in books of account.

S. 44AD : Presumptive taxation-Cash credits-Unverifiable cash deposits and bank withdrawals-Duty on assessee to prove-Addition accepted. Limited scrutiny-AO is with in jurisdiction to take up additional issue in limited scrutiny of less than Rs. 10 lakhs. [S. 68]

S. 43B : Certain deductions only on actual payment-certain interest expenses claimed were not deposited before the due date of filing return of income-no documentary evidence of payment made-disallowed-S. 40(a)(ia)-Amounts not deductible-Deduction at source-Interest, Commission, Brokerage-whether proviso to section 40(a)(ia) inserted by Finance Act, 2012 is prospective or retrospective nature-In Ansal Landmark Townships (P) Ltd. 279 CTR 384 (Del), the Delhi High Court has held that second proviso to Section 40(a)(ia) is declaratory and curative and has retrospective effect from 1st April 2005 inserted via Finance (No. 2) Act, 2004-benefit granted.

S. 43B : Deductions on actual payment-Contributions to provident fund and employee’s state insurance-contributions made late but before filing return-allowable. [S. 2(24)(x), 37(1)]

S. 43A : Rate of exchange-Foreign currency-Fixed asset-Foreign currency loan-Adjustment against foreign exchange gain against capital work in progress and net amount of gain was to be offered to tax.

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Purchaser written off Advance paid as bad debts-Advance received is taxable.

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Travel agency-Cash payments exceeding prescribed limits-business contingency-Payment genuine-Not disallowable. [Rule 6DD]

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Diversion of income-Matter remanded-lockdown was in force was to excluded for purpose of time limits set out in rule 34(5) of ITAT Rules for pronouncement of orders. [ITAT R. 34(5)]

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Related parties-Fair market value of rent-Failure to conduct any enquiry-No disallowance can be made-Sister-in-law of an individual does not fall under definition of relative under section 2(41)-Rental payment on account of godowns / shop made to sisters-in-law could not be disallowed. [S. 2(41), 56(2)]