S. 37(1) : Business expenditure-Demurrage charges-Held to be allowable-Corporate responsibility and expenditure commission- Held to be not allowable as no details were filed.

S. 36(1)(iii) : Interest on borrowed capital-Finance cost-Advertising agency-Held to be not allowable as revenue expenditure as no business income was earned from advertising business or real estate business during the year. [S. 37(1)]

S. 12A : Registration–Trust or institution-Proviso to S.12A(2) which was added by Finance Act, 2014 shall be retrospective in operation-Entitled to get benefit of registration, [S.10(23C) (iiiad), 10(23C)(vi), 12AA]

S. 10AA : Special economic zones-Once claim of deduction had been accepted in first year of operations and also in second year, then in third year same could not be withdrawn by examining factors which were required to be seen in first year of claim-Without withdrawing or setting aside relief granted for first assessment year, AO cannot with draw relief for subsequent assessment years. [S. 10AA(4), 10B]

S. 10(23G) : Infrastructure undertaking-Certain incomes of Infrastructure Capital Funds or Infrastructure Capital Companies-Investment in distribution of electricity and not generation of electricity Not entitle exemption. [S. 80IA(4)]

S. 10(6A) : Foreign company-Contract approved by Indian Government- Royalty or fees for technical services-Grossing up amount – Entitle to exemption – Reversal of provision for royalty –Deletion of addition is held to be justified. [S. 143(3), 154]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Deduction at source-Non-resident-Licence fee-Paid for copy righted article-Maintenance fees-Training fees-Not liable to deduct tax at source-DTAA-India-USA. [S. 195, 197, 201, Art.7, 12]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent establishment-No management activity was conducted in India-There was no fixed place of Permanent establishment-No business connection question of estimated income did not arise—Not liable to deduct tax at source or interest -DTAA-India–South Korea. [S. 234A, 234B, Art. 5, 7]

S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot made as without bringing basic fact that expenditure actually incurred to earn exempt income- Matter remanded to the AO. [ R.8D( 2) (ii) ]

S.45: Capital gains- Exchange -Slump sale -A transaction by which an undertaking is transferred in consideration of the allottment of shares is an “exchange” and not a “sale”. The fact that the agreement refers to the parties as “seller” and “purchaser” is irrelevant. S. 2(42C) and S. 50B apply only to “sale” and not to “exchange”. As there is no estoppel against a statute, an assessee is entitled to raise the claim regarding non-taxability at any stage of the proceedings [ S.2(42C), 50B ]