S. 37(1) : Business expenditure–Year of deduction-Slum development expenditure-Contingent upon authority giving vacant possession of plot-Authority was unable to hand over vacant possession of land-Disallowance of expenditure is held to be justified. [S. 145]
S. 36(1)(iii) : Interest on borrowed capital-Investment in share capital of sister concern, with a view to earn dividend income-Expenditure incurred is held to be allowable as deduction .
S. 28(i) : Business loss–Revaluation of obsolete inventories- Valuation was supported by technical experts–Allowable as business loss. [S. 145]
S. 24 : Income from house property-Deductions-Business income from renting out its property-Depreciation was allowed–Deduction u/s 24 is not permissible. [S. 24, 32]
S. 23 : Income from house property-Annual value–Standard rent -illegal tenant – Deposit of certain compensation on monthly basis in Court, could not form basis to make addition to assessee’s rental income in respect of other tenants who are protected under Rent control Act. [S. 22, Delhi Rent Control Act.]
S. 14A : Disallowance of expenditure-Exempt income-Sufficient interest free funds in excess of interest bearing fund to make investment-Deletion of disallowance is held to be justified. [R. 8D]
S. 12AA : Procedure for registration–Trust or institution-Objects relatable to education, medical aid and help to poor–Denial of registration is no valid. [S. 2(15)]
S. 10A : Free trade zone-Export turnover–Total turnover-while computing amount of deduction expenditure incurred in foreign currency that was deducted from export turnover, had to be deducted from total turnover.
S. 50 : Punishment for failure to furnish return of income- Where the assessee did not disclose its foreign assets in the course of search as well as in the settlement commission proceedings, he was liable to prosecution under the provisions of Black Money Act. [S. , 55, 71 , ITA, S.153A, ]
S. 18(1)(c): Penalty –Concealment -Difference of opinion between the assessee and the department with respect to the valuation of the property is not a ground for levy of penalty.