S. 45 : Capital gains-Purchase and sale of shares-Long term capital gains-Penny stock-SEBI Registered broker-Investigation report-Burden is on revenue to disprove the documents-Addition as unexplained money is held to be not justified. [S. 10(38), 69A]

S. 43B : Deductions on actual payment-Interest payable to Bank-Provision that conversion of interest into loan not equivalent to actual payment-Payment through overdraft account or cash credit account-Not disqualified. [S. 43B(d), 43B(e)]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of stock-in-trade-Disallowance is affirmed. [R. 6DD]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of land-Amount paid neither debited to profit and loss account nor claimed as deduction.

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of capital asset or investment-No disallowance can be made.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payees declaring payments in returns and paying tax thereon-AO was directed to verify and decide according to law.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Settlement of loan provision of deduction at source is not applicable-Amount of sales written as bad debt which is reflected in profit and loss account-Allowable as deduction subject to verification. [S. 36(1)(vii)]

S. 37(1) : Business expenditure-Provision for sales and advertisement expenses-Liability crystallising only in the following year-Disallowance is held to be proper-Advertisement expenses-Matter remanded-Provision for warranty-Allowable only if amount is claimed during year. [S. 145]

S. 37(1) : Business expenditure-Firm of Chartered Accountants-Part Payment of subscription fees through Mumbai entity as reimbursement of its share to international group entity-Allowable as deduction-Legal and professional fees-Criminal complaint filed against partner in matter related to business of firm-Allowable as business expenditure. [S. 195]

S. 37(1) : Business expenditure-Payee relative of promoter-AO can not decide the reasonable and commercial expenditure-Payment to consultant-Failure to procure business-No disallowance can be made-DTAA-India-UAE. [S. 40(a)(i), Art.14(7), 22(1)]