S. 37(1) : Business expenditure-Provision for development expenses -Consistent accounting pattern-Held to be allowable. [S. 145]

S. 37(1) : Business expenditure-Setting up of business-Service industry for manging mutual funds-Upon its incorporation, assessee took various steps to commence its business such as hiring of people application to SEBI, organizing for space etc, and this amounted to setting up business- Expenses are allowable.

S. 37(1) : Business expenditure-Dormant-Society which was engaged in business of electricity distribution under license issued by State Government – License granted to assessee was expired-licence was not renewed–No intention to discontinue of business- temporary phenomenon and assessee would resume business soon after license was renewed-Expenditure claimed by assessee were allowable business expenditure. [S. 28(i), 70, 72]

S. 37(1) : Business expenditure-Company–Corporate status -employee benefits, finance costs and administrative and other expenses cannot be disallowed as the said expenditure were necessary to maintain its corporate status.

S. 37(1) : Business expenditure–Travel expenses-Ad hoc disallowance- Company–Directors-No ad hoc disallowance can be made in respect of use of vehicles by directors of company was unjustified for alleged personal use by the directors.

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts – Schedule bank – Claim which is disallowed as bad debt cannot be allowed in the absence of provision made for the same in profit and loss account under bad debt. [S. 36(1)(viii)]

S. 32 : Depreciation-Charitable trust-Amendment in S.11(6) is prospective and applicable for and from 2015-16 onwards- Depreciation is allowable on assets even though cost of same was allowed as application. [S. 11(6)]

S. 24 : Income from house property–Income from other sources-Co-operative society-Deductions-letting out space on terrace for installation of mobile tower/antenna was taxable as income from house property- deduction is available. [S.22, 24(a), 56]

S. 12AA : Procedure for registration–Trust or institution- Cancellation of registration-Educational institutions-Collected huge amount of capitation fee from students for admission to medical colleges-order passed by CIT(E) cancelling registration granted to as well as withdrawing exemption granted to it under S 10(23C)(vi) and 10(23C)(via) of the Act is held to be justified- However denial of registrationmerely on ground that some part of land on which assessee had setup an university was not in ownership of said university as per certain Government notification, same was unjustified-Matter remitted back to the CIT( E) for the AY.2009-10. [ S.10(23C)(vi), 10(23C)(via), 12A]

S. 11 : Property held for charitable purposes–Nursing school located in hospital’s premises-Running hospital and nursing school were intricately connected and dependent on each other and thus, was one inseparable activity entitling to exemption. [S.2(15), 12A]