S. 54 : Capital gains-Profit on sale of property used for residence-Land appurtenant-Sale of plot-Entitle to exemption-Cost of costly items purchased for the new house cannot be held to be treated as investment for making the house habitable-Not entitled to exemption. [S. 45, 54F]
S. 45 : Capital gains-Transfer of property in the preceding year-Transfer of property took place on execution of sale deed in the preceding year, the amount of capital gains cannot be charged to tax for the assessment year. [S. 2(47)(i), 147, 148, Transfer of Property Act,1882, S. 53A, Indian Registration Act, 1908, S. 17, 49, 171(IA)]
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Refund of Excise duty, subject to condition is liable to tax during the year of receipt.
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payer and payee comply with the first proviso to S. 201(1)-No disallowance can be made. [S. 201(1)]
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission paid to a resident of UAE-Not liable to deduct tax at source-Disallowance is not justified. [S 195]
S. 37(1) : Business expenditure-Provisions made towards ‘periodic overlay expenses’-Not Contingent liability-If the same can be determined with some reasonableness-Allowable as deduction. [S. 80IA, (4)(i), 145]
S. 37(1) : Business expenditure-Prior Period expenses-Tax deducted in the financial year-Settlement on the rent in the year under consideration-Allowable. [S. 145]
S. 37(1) : Business expenditure-Business loss-Capital or revenue-Acquiring company-Investment in subsidiaries-Write off expenditure-Acquiring business-Allowable as revenue expenditure. [S. 28(i)]
S. 37(1) : Business expenditure-Rejection of books of account-Adhoc disallowance on suspicion and conjectures, without rejecting the books of account not justified. [S. 145]
S. 36(1)(iii) : Interest on borrowed capital-Addition made by simply suspecting that the amount of interest paid in excessive-addition cannot sustain as no strong reason given by the AO-Addition is not valid.