S. 45(2) : Capital gains-Conversion of a capital asset in to stock-in-trade–Year of taxability-Capital gains arising from such conversion was to be brought to tax when transfer/sale of such asset took place and not on date of converting capital asset into stock-in-trade. [S. 45]

S. 45 : Capital gains-Sale of assets used for research and development-Not eligible to claim short-term capital loss or long-term capital loss on sale of assets used for research and development activities for which deduction under S. 35 had already been allowed.[S.2(29A), 2(29B), 2(42B), 35]

S. 44AD : Presumptive taxation-Trader in medicine-Undisclosed cash credits–Bank account-Addition is held to be not justified. [S. 68, 69A, 115BBE]

S. 43(6) : Written down value-WDV of building had been revised on account of disallowance of depreciation in past years-Depreciation on such higher revised opening WDV of building was to be allowed. [S. 32]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Disallowance is applicable not only on payable amount but also on paid amount and under both circumstances TDS should be deducted-If payee had accounted for commission as his income and had shown it in his return of income and also paid tax thereon, then no disallowance could be made. [S. 201]

S. 37(1) : Business expenditure-Management supervision charges-Allowable as business expenditure.

S. 36(1)(vii) : Bad debt–Advance to subsidiary–Interest income was offered as income–Failure to repay the advances-Allowable as bad debts. [S. 28(i), 36(2), 37(1)]

S. 36(1)(iii) : Interest on borrowed capital–Sufficient interest free funds-Interest free advances-Advance of loan to related parties– Matter remanded back for disposal afresh.

S. 36(1)(iii) : Interest on borrowed capital–Firm-Partners-Debit balances in partner’s current account–Opening debit balances-No disallowance can be made.

S. 35 : Scientific research expenditure-Weighted deduction-In house research and development facility-Mandate of approval of quantum of expenditure had been inserted with effect from 1-7-2016-for relevant year eligible for weighted deduction. [S.35(2AB)]