S. 43B : Deductions on actual payment-Employees’ contribution of PF and ESI before due date of filing return-Entitled to deduction. [S. 36(1)(va), 139(1)]

S. 43(5) : Speculative transaction-Trading in derivatives-Hedging contract with its bankers to minimize possible fluctuation in foreign currency-Not speculation loss-Allowable as business or business expenditure. [S. 28(i), 37(1)]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payment was made by way of legal tender i.e. Indian currency, said payments were covered by exception contemplated in rule 6DD(b)-Disallowance is not valid [R.6DD(b)] and, therefore, same could not be disallowed under section 40A(3).

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess cannot be equated as tax or surcharge-Allowable as business.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contractors/sub-contractors Custom House agent, to shipping companies/CFS agents-Failure to deduct tax at source-Disallowance is valid. [S. 194C]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Tax deducted by applying wrong provision of the Act-Lower rate-No disallowance can be made. [S. 201(1), 201(IA)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest on Bank loans-Interest paid on bank loans is not liable to TDS deduction and hence disallowance is not called for-Matter remanded for verification. [S. 37(1)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Royalty-Payments to foreign company for rendering internet private line services-Ambiguity in definition of royalty-Disallowance is not valid-DTAA-India-USA. [S. 9(1)(vi), 9(1))(vii), 195, Art. 12]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Repair and maintenance services-Reimbursement of expenses-No TDS is deductible-DTAA-India-Japan. [S. 9(1)(vii), 19, Art. 12]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Shipping business-As per charging section 172, no liability arises for payment of tax by non-resident receiving payment on time charter basis. [S. 172, 195]