S. 57 : Income from other sources-Deductions-Expenditure for purposes of earning-Borrowing money and lending it to others-Interest on borrowed money-Allowable as deduction.[S.56, 57(iii)]

S. 56: Income from other sources-Shares at premium-Valuation of shares Discounted cash flow method Determination of fair market value of shares under rule 11UA-Order of Tribunal affirmed.[S. 56(2)(viib), R. 11UA]

S. 40A(3) :Expenses or payments not deductible-Ad-hoc disallowance-Cash payments exceeding prescribed limits-Deletion of disallowance by Commissioner (Appeals) on examination of vouchers confirmed by Tribunal is affirmed [S.145 260A]

S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Tribunal was justified in holding that expenses claimed by assessee were not excessive and disallowance of assessee’s claim was unsustainable-Order of Tribunal affirmed-Presumptive tax-Civil construction and Turnkey projects-Provision in applicable-DTAA-India-Italy. [S. 9(1)(i),44BB, 260A Art. 7]

S. 37(1): Business expenditure-Capital or revenue-Expenses on removal of over-burden Assessee treating expenditure up to stage of mine reaching 25 per cent-Capital expenditure-Demand notice-Matter remanded. [S. 35E, 156, Art. 226]

S. 37(1) : Business expenditure-Expenditure wholly and exclusively for business purposes-Expenditure incurred towards welfare activities and community development activities and recreation facilities-Expenditure incurred to fulfil obligations under National Coal Wage Agreements-Tribunal justified in allowing expenditure-Environmental expenses Tribunal remanding matter for want of reasoning by Commissioner (Appeals) and supporting documents is justified. [S. 260A]

S. 37(1): Business expenditure-Insurance and audit expenses Agreement entered into by assessee not covering insurance and audit expenses-Allowable as business expenditure. [S. 260A]

S.37(1): Business expenditure-Employee welfare expenses-Payment under memorandum of settlement for benefit of entire locality-Allowable as business expenditure.[S. 40A(9)].

S. 36(1)(iii) :Interest on borrowed capital-Borrowed capital had been used for purchase of agricultural land-Interest not deductible.[S. 10(1), 14A,260A]

S. 36(1)(iii) :Interest on borrowed capital-Used for purpose of business-Acquiring interest-Allowable as deduction. [S 260A]