S. 43B : Deductions on actual payment-TCS on sales of scrap-Not claimed as deduction-Journal entries-Addition is deleted. [S. 206C]

S. 43(5) : Speculative transaction-High sea sales-Buying and selling edible oil-Final and physical delivery of goods had been taken by end user at port of destination after compliance with all customs formalities-Set off against interest income-Transactions cannot be termed as speculative transaction. [S.73(1)]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Income deemed to accrue or arise in India-Fees for technical services-Shipment clearing and forwarding charges-Payment is not chargeable to tax in India-Disallowance is deleted-Article 12 of OECD Model Convention. [S.9(1)(vi), 195]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Engaged in providing services and facilities relating to exploration and exploitation of mineral oil and natural gas Interest-Not taxable in India.[DTAA-India-Singapore [S. 9(1)(1), 44BB, 195, Art. 5, 7,]

S.37(1): Business expenditure-Sales promotion expenses-Construction project-Allowable as revenue expenditure-AS-7 was purely effective for contractor in construction, not for developers, question of capitalizing project cost of sale promotion was unjustified.[S.145, AS-7]

S. 37(1) : Business expenditure-Business loss-Advance for purchase of business-Failure to supply goods-Trade advances-Advance written off allowable as business loss. [S.28(i), 36(2), 37 (1)]

S.37(1): Business expenditure-Employee Stock Option (ESOP)-Disallowance is deleted.

S. 36(1)(iii) : Interest on borrowed capital-Advanced funds for commercial purposes without charging interest-Advanced from interest free funds-Order of CIT(A) confirming the disallowance is deleted.

S. 32AC: Investment in new pant or machinery-Installation of machinery-Blending of lube oil tantamounts to manufacture or production-Entitle to deduction.

S. 32 : Depreciation-Computer software-Depreciation is allowable at rate of 60 per cent.