S. 45 : Capital gains-Business income-Converted its stock-in-trade of shares into investment in shares-Profits arising from sale of such investment was to be taxed as capital gains, long-term or short-term and not as business income.[S. 28(i)]

S. 45 : Capital gains-Business income-Shares shown as investment in balance sheet and not as stock in trade-Period of holdings ranging from 3301 to 1352 days-Income from sale of securities is assessable as capital gains and not as business income.[S. 28(i)]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Outstanding more than three years-Addition cannot be made-Order of CIT(A) is affirmed.

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Royalty-Fes for technical services-Transponder fee and uplinking charges-Payment was not made for right to use any industrial, commercial or scientific equipment-Payment would not fall within ambit of royalty-Not liable to deduct tax at source-DTAA-India-USA [S.9(1)(vi), 9(1)(vii), Art. 12]

S. 37(1) : Business expenditure-Capital or revenue-Land development expenditure is allowable as revenue expenditure.

S. 37(1) : Business expenditure-Penalty-Prior period expenses-Crystallized in year under consideration-Breach of contract-Can not be equated with offence, or something prohibited by law-Entitle to deduction. [Explanation to section 37, S. 145]

S. 36(1)(iii) :Interest on borrowed capital-Interest free advances-Sufficient funds-No disallowance can be made.

S. 36(1)(iii) :Interest on borrowed capital-Interest-Banks and Public Financial institutions-Treatment in books of account-Allowable as deduction in the year in which the payment is made irrespective of its treatment in books of account. [S. 43B, 145]

S. 32 : Depreciation-Additional depreciation-Business is commenced in earlier year-Depreciation and additional depreciation cannot be disallowed.

S. 28(i) : Business income-Unregistered agreement-Deemed owner-Capital gains-Sale of land-Assessing Officer is justified in making addition on account of entire sale consideration received from ultimate buyer in hands of assessee. [S. 2(47), 4]