S. 14A : Disallowance of expenditure-Exempt income-In the absence of any exempt income- No disallowance can be made. [R. 8D]

S. 271B : Penalty-Failure to get accounts audited-Accommodation entries–Gross amount received to be considered for computing monetary limits of Rs. 40 lakhs and not the commission earned by him –levy off penalty is held to be justified. [S. 44AB]

S. 194C : Deduction at source–Contractors-Payments to artists-Participation in reality show–Payment made do not fall within the ambit of S.194J as professional fees. [S.194J, 201(1)]

S. 80P : Co-operative societies–Entitle deduction in respect of interest earned from co-operative societies.[S. 80P(2)(a)(i), 80P(2)(d)].

S. 80IB : Industrial undertakings-Production and sale of mosquito repellents-In absence of any other rational basis for allocating income for computation of amount eligible for deduction, ratio of excisable value of output of non-eligible unit vis-a-vis that of eligible units would constitute a good basis for bifurcation of income Matter remanded.

S. 80G : Donation–Matter remanded to CIT(E) for verification of genuineness of activities of trust.[S. 80G (5)]

S. 68 : cash credits–Bank statement is not books of account Sale of shares–Addition on the basis of bank statement treating the statement as books of account is held to be not valid–Natural justice–Statement of third parties cannot be relied upon without giving an opportunity of cross examination. [S. (2(12A), 44AA, 45, 69, 69A, 143(3)]

S. 45 : Capital gains-Business income-Merger investments in mutual funds–Liable to be assessed as capital gains and not as business income. [S. 28(i)]

S. 43(5) : Speculative transaction–Hedging contracts with bank– Loss on fluctuation in foreign currency–Interest was paid on fixed rate of 1.7 percent on loan amount–Not speculative in nature eligible as deduction–Interest is held to be allowable–Premium is held to be allowable on proportionate basis. [S. 36(1)(iii), 37(1), 40(a)(ia), 195]

S. 11 : Property held for charitable purposes-Pendency of appeal–Registration was granted–Corpus donation-Matter remanded to AO. [S. 12A, 12AA]