S. 54 : Capital gains-Profit on sale of property used for residence-declared income under head business or profession-No declaration of capital gains-Denial of exemption by the AO, which is up held by the CIT(A) is affirmed. [S. 28(i), 54F, 143(1)]

S. 50C : Capital gains-Full value of consideration-Stamp valuation-Transfer of tenancy rights-Permanent alternate accommodation-Provisions of section 50C would not apply in case of transfer of tenancy rights. [S. 45(1)]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Fes for technical services-Sales commission-Not liable to deduct tax at source-DTAA-India-USA.[S. 195, Art. 12]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission-Export commission to non-residents agents for services rendered outside India is not liable for withholding tax and, therefore, no disallowance could be made-7 of OECD model convention. [S. 9(1)(i), 195]

S.37(1): Business expenditure-Part of bad debt-Capital expenditure-Alternative claim-Matter remanded to remanded to Commissioner (Appeals) to verify and consider said claim-Disallowance on staff welfare, marketing, conveyance, travel, and miscellaneous expenses is restricted to 10%. [S.36(2)]

S. 37(1) : Business expenditure-Depreciation-Temporarily suspension of business-Dormant for some times-Eligible to claim revenue expenditure and depreciation of fixed assets. [S. 32]

S.37(1): Business expenditure-Percentage of completion method (POCM)-Provision for expected contract losses-Supported by scientific basis and AS-7-Allowable as deduction and no addition can be made to book profit. [S.115JB, 145]

S.37(1): Business expenditure-VAT penalty is compensatory in nature and would be allowable as deduction.

S.37(1): Business expenditure-Warranty provision-Provision is calculated based on DCF method in a scientifically sound and consistent method which complied with Accounting Standard 29 (AS-29)-Allowable as deduction.[S. 145]

S. 36(1)(iii) :Interest on borrowed capital-Interest free loan-Share capital and reserves and surplus far exceeding interest-free advances-No disallowance can be made-Matter remanded.