S. 45 : Capital gains Full value of consideration-Deductions -Consideration on sale shares including sum held in Escrow Account offered to tax-Receiving reduced sum from Escrow Account after Completion of assessment-Whole amount credited in book not taxable as capital gains-Only actual amount received taxable-Entitled to refund of excess tax paid-Recomputation can be less than the returned income-Proviso to section 240 is not applicable-The assessee can be asked to pay only such amount of tax which is legally due under the Act and noting more-Entitle to refund of excess tax paid [S. 48, 264, Art, 226]

S. 43B : Deductions on actual payment-Service tax-Deduction available on actual payment.

S. 43B : Deductions on actual payment-Statutory corporation-Obligation of agent to account for and pay amounts collected by him on behalf of principal is purely fiduciary-Disallowance is not valid. [Electricity Supply Act, 1948, S. 5]

S. 43B : Deductions on actual payment-Employees’ and employers contribution-Paid before due date of filing of return-Allowable as deduction. [S. 139(1)]

S. 43B : Deductions on actual payment-Loan from its two promoters, Government of Tamil Nadu and IL&FS-Public financial institutions-Matter remanded to Assessing Officer. [S. 254(1)]

S. 37(1) : Business expenditure-Amount paid represented fee for participation in training programmes-Allowable as business expenditure. [40A(9)]

S. 37(1) : Business expenditure-Buy back of shares-Amount over and above face value of shares to departing group of shareholders-Allowable as revenue expenditure. [S. 263]

S. 37(1) : Business expenditure-Buy back of shares-Amount over and above face value of shares to departing group of shareholders-Allowable as revenue expenditure. [S. 263]

S. 35DDA : Amortisation of expenditure-Voluntary retirement scheme-Accrued liability-Allowable as deduction [S. 43(2), 145]

S. 32 : Depreciation-Claim of depreciation as permissible-Deletion of disallowance was proper.