S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable -Salaries paid to Doctors who were reputed professionals in their fields could not be held to be excessive and unreasonable hence disallowance of 15% of salaries was deleted .

S.37(1): Business expenditure –Keyman insurance policy in the name of directors is held to be allowable as business expenditure .

S. 10(10A): Commutation of pension -Employees of statutory corporations cannot be regarded as employees of State or Central Government and exemption is not available , however as the assessee was under bonafide belief and discharged its obligation u/s 192 , proceedings u/s 201(1), 201(IA) were quashed [ S.192, 201(1), 201(IA) ]

S. 115JB : Book profit – Provisions for bad and doubtful debts – In view of retrospective amendment made by Finance Act, 2009, provisions for bad and doubtful debts being ascertained liability are not required to be added in matter of computation

S.92C: Transfer pricing- Foreign AE could be a tested party, provided complete financials of said AE along with complete financials of relevant comparables required to benchmark international transaction were made available before TPO, matter remanded .Transaction with AE being higher than ALP, no ALP adjustment could be made matter remanded.

S. 80IE : Undertakings – North – Eastern States – ‘initial assessment year’ would be year in which substantial expansion is completed by assessee which would enable it to generate revenue- Denial of exemption is held to be not justified .

S. 74 : Losses – Capital gains -Unquoted shares-Sale of shares at Rs 2 per share – long-term capital loss on issue of shares cannot be disallowed merely on basis of suspicion and conjectures without making any enquiries in the hands of the purchaser of shares.

S. 73 : Losses in speculation business – Trading of shares was not primary activity-Solitary transaction of sale of shares could not have been treated as speculative business .

S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation – Merger – Non-banking finance company (NBFC) – Merger Scheme approved by High Court having in mind larger public interest, Claim of set off of unabsorbed short-term capital loss and unabsorbed business loss incurred by amalgamating companies cannot be denied on ground that amalgamating companies did not own an ‘industrial undertaking’ as defined under S. 72A of the Act.[ S.72, 74 ]

S. 71 : Set off of loss – One head against income from another -Unabsorbed depreciation and brought forward business loss can be set off against income from other sources [ S.72 ]