Appeal partly allowed, issues decided for assessee or remanded. Expenditure disallowance deleted, cheques verification ordered.

The appeal was partly allowed with various issues either decided in favor of the assessee or restored back to the AO for further examination based on previous year's orders and legal principles. The disallowance of expenditure for obtaining new contracts was deleted, and the addition on account of unpresented cheques was sent back to the AO for verification. The issue regarding misc. expenses in the paper unit was dismissed as not pressed, and the assessment of short-term capital gain in relation to the sale of factory land and building was restored to the AO for reconsideration. A general ground not pressed was also dismissed.

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Issues:
1. Disallowance of expenditure incurred by International Contracts division
2. Addition on account of unpresented cheques issued by the appellant-company
3. Disallowance of misc. expenses in paper unit
4. Assessment of short-term capital gain in respect of sale of factory land and building
5. General ground not requiring adjudication

Issue 1: Disallowance of expenditure incurred by International Contracts division
- The assessee claimed Rs. 11,79,818 as expenditure for obtaining new contracts, which was disallowed by the AO and CIT(A) as capital in nature.
- The Tribunal, following its previous year's order, deleted the addition as the facts were identical.

Issue 2: Addition on account of unpresented cheques issued by the appellant-company
- The AO treated uncashed cheques as income, observing parties showed no interest in collecting payments.
- The CIT(A) upheld the addition, stating the liability ceased to exist as cheques were not encashed or revalidated.
- The Tribunal found no evidence of forfeiture or intention not to honor debts, restoring the issue to AO for verification.

Issue 3: Disallowance of misc. expenses in paper unit
- The assessee did not press this ground, leading to its dismissal.

Issue 4: Assessment of short-term capital gain in respect of sale of factory land and building
- The assessee argued that assets entitled to the same rate of depreciation should form a single block for determining capital gain.
- The CIT(A) considered the block of assets only in relation to the paper unit as a separate distinct block, rejecting the assessee's plea.
- The Tribunal restored the issue to the AO for further consideration based on previous year's order.

Issue 5: General ground not requiring adjudication
- A general ground not pressed by the assessee was dismissed as not pressed.

In conclusion, the appeal was partly allowed, with various issues either decided in favor of the assessee or restored back to the AO for further examination based on previous year's orders and legal principles.

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