S. 45:Capital gains- Alleged bogus Long-term capital gains- As neither the statement of Mr Mukhesh Choksi was provided to the assessee nor cross-examination was allowed and it was not even placed on record, the action of the AO in treating the LTCG and STCG as income from other sources was not warranted. [ S. 69 ]

S. 194C : Deduction at source – Contractors -Principal to principal basis – Manufacture or supply of a product according to requirement or specification of a customer by using material which is purchased from a person other than such customer is not liable to deduct tax at source .

S. 80GGC : Contribution – Political parties – Payment was made to newspaper for advertisement contending that newspaper was run by political party, matter remanded for verification whether it was donation to political party .

S. 72 : Carry forward and set off of business losses -Speculation losses-There is no bar in adjustment of unabsorbed business losses from speculation profit of current year, provided speculation losses earlier years has been first adjusted from speculation profit. [ S.71 , 73 ]

S. 43B : Deductions on actual payment – Service tax – Not deposited with Government before due date of filing of return – Disallowance was held to be justified [ S.139(1) ]

S.37(1): Business expenditure -Capital or revenue – Payment of spectrum charges to Department of Telecommunications on quarterly basis is held to be revenue expenditure.[ S.35BB ]

S.37(1): Business expenditure -Distribution of gift articles – Accommodation entries- Bogus purchases – Disallowance was restricted to 30 % of the claim .

S.37(1): Business expenditure- Foreign tour expenses of Research manager of export is held to be allowable as the turnover has increased in succeeding years .

S.37(1): Business expenditure -Legal expenses – Merely because the payment was made cheque and TDS was deducted expenses cannot be allowed , in the absence of any documentary evidence connecting expenditure incurred for business auxiliary service with business of assessee.

S.37(1): Business expenditure- Professional fees paid to retired employees of assessee who were expert in this field is held to be allowable as deduction .