It is now well settled that in determining whether a receipt is liable to be taxed, the taxing authorities cannot ignore the legal character of the transaction which is the source of the receipt. The taxing authorities are bound to determine the true legal character of the transaction. "Contingent deposits" received from leasing/hire purchase customers with a view to protect from potential sales tax liability, which is credited to turnover, is assessable to income-tax (Bazpur Co-operative Sugar Factory (1988) 3 SCC 533 distinguished).

S. 80HH & 80-I do not require maintenance of accounts unit wise and deduction can be claimed on the basis of consolidated accounts. To avoid litigation, the assessee should get the working of unit wise net profits certified by the Chartered Accountant.

S. 234A to 234C is mandatory & can be levied even if assessment order is silent

As held in Anjum M.H. Ghaswala 252 ITR 1 (SC), interest u/s 234A to 234C is mandatory and interest under Section 234B/234C is mandatory in nature and there is no need for the AO to specifically recite in the assessment order that the said interest shall be levied. The Tribunal should consider whether the assessee is eligible for waiver of interest as per Notification No.F.No.400/234/95-IT(B), dated May 23, 1996