S. 48 : Capital gains-Mode of Computation-Cost of improvement-Payment to sub-contractor-Not given opportunity to cross-examine sub-contractor-Payment is allowable as deduction. [S. 45, 131]

S. 48 : Capital gains-Mode of Computation-Brokerage —Allowed as deduction. [S.45]

S. 44BB : Mineral oils-Computation-Presumptive tax-Revenue received on account of provision of facilities and services of seismic data acquisition, planning and carrying out of pre-survey study, taking marine data and confirming prospects, maintenance/upgradation/support of software licences-Not fees for technical services-Reimbursement of service tax-Not includible in gross turnover for computing taxable income. [S. 9(1)(vii), 44DA]

S. 41(2) : Profits chargeable to tax-Balancing charge-Sale of machinery-Once profit embedded in sales taxed, same sales cannot be taxed again-Income from undisclosed-Once sales are accepted purchases cannot be disallowed-Disallowance is deleted.[S. 69C]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors —Confirmation of account filed-Addition cannot be made.

S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Joint venture-Assessing Officer had not brought any comparable figures to disallow expenditure —Addition is deleted. [S.40A(2)(b)]

S. 40(b)(i) : Amounts not deductible-Partner-Salaries-Bonus-Commission-Remuneration-Income from other sources-Business income-Unexplained excess stocks-Survey-Excess stocks chargeable to tax as business income-Eligible for deduction for remuneration payable to partners. [S.133A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Certificate from Chartered Accountant that payee has included amount in question in his return and paid tax thereon-Assessee is not in default-Disallowance is deleted.[S. 194A, 201(1)]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Interest-Interest on loans paid to Indian and Foreign banks-Legal fees-Not liable to deduct tax at source-Disallowance is not justified-DTAA-India-USA-Rebate for early payment is not interest-Not liable to deduct tax at source.[S.2(28A), 194A, 195, Art. 12]

S. 37(1) : Business expenditure-Lease rentals on vehicles and computers-Matter remanded to the Assessing Officer.