S.47(xiiib): Transaction not regarded as transfer-Capital gains-Conversion of firm into LLP]-Cash credit-Transfer of share capital and reserves of the company to the partners accounts upon conversion to LLP-No credits found in the assessee’s books of accounts-The AO erred in making the addition in the hands of the assessee-Assuming that there was transfer, it is the credit in the partners’ accounts and not in the assessee’s account-Addition was deleted. [S.45, 47(xiiib)(f), 68]

S. 45: Capital gains-Sale of joint property-Only 50 per cent of sale consideration can be taken-AO is directed to recompute the capital gain.[S. 48]

S. 44AD: Presumptive basis-Income from undisclosed sources-Cash seized during requisition under S. 132A-Not mandatory to maintain books of account]-Addition was deleted. [S.69A, 132A]

S. 40(a)(ia): Amounts not deductible-Deduction at source]-Payment of sales commission and cash incentives to retailers-the assessee filed various evidences including confirmation from the parties to prove the genuineness of said expenditure, adverse inference cannot be drawn merely because the notices issued under s. 133(6) were returned unserved by the postal authorities.[S.37(1), 133(6), 194H]

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Commission paid to non-resident agents-Services rendered outside India]-No disallowance can be made for failure to deduct tax at source. [S.9(1)(i), 195]

S.37(1): Business expenditure]-Accrual-Provision for claim pay out in respect of guarantee fee-allowable as a deduction.[S. 145]

S. 37(1): Business expenditure]-Interest on delayed payment of tax deducted at source]-Allowable as business expenditure. [S. 40(a)(ii), 201(IA)]

S.37(1): Business expenditure]-Commission for securing a loan]-Allowable as business expenditure.

S. 35: Expenditure on scientific research-Approval of DSIR-In the absence of any statutory requirement for the DSIR to quantify or approve each expense prior to 1st July, 2016, the claim of weighted deduction under S. 35(2AB) cannot be restricted to the amount mentioned in Form No. 3CL. [S. 35(2AB]

S. 35: Expenditure on scientific research-Allocation of common expenses to tax-exempt units-Eligible undertaking-Separate books and verifiable entries-Disallowance is not sustainable. [S.10AA, 80IC, 80IE]