S. 11 : Property held for charitablepurposes- Object to promote and safeguard rubber industries- Receipts from non-members and other sources was utilised/applied solely towards promotion of objects of association-No portion was paid or transferred directly or indirectly to its members-Proviso to S 2(15) is not attracted- Exemption cannot be denied -Contribution made to an association, formed with an object to promote and safeguard rubber industries, to corpus of Rubber Skill Development Centre, a section 25 company formed under Prime minister Sector Skill development programme, was not a case of investment as envisaged under S. 11(5) read with 13(1)(d)-Exemption cannot be denied. [S. 2(15), 12AA, 13(1)(d)].

S. 11 : Property held for charitable purposes–Application of income- Honorarium to doctors outside India for attending a seminar conducted for benefit of its parent body–Payments covered under FEMA- RBI approval is not obtained–Application of income is rejected. [S. 11(1)(c)]

S. 11 : Property held for charitable purposes-Application of income-Expenditure incurred in an earlier year could be adjusted against income of succeeding year while computing taxable income of succeeding year. [S. 12, 12A]

S. 10(37) : Capital gains – Acquisition of agricultural land- Interest -Interest awarded on enhanced compensation paid by Government for acquisition of agricultural land under S. 28 of Acquisition Act would partake of character of compensation and would be eligible for exemption. [Land Acquisition Act, 1894, S.10(37), 56(2)(vii)]

S. 4 : Charge of income-tax–Capital or revenue-Capital gains- Capital asset- Right to sue -Development agreement- Builder-Right to sue is a right in personal which cannot be transferred and, thus, amount received as compensation in lieu of said right is not chargeable to tax. [S. 2(14), 2(47) 28(va), 45]

S. 2(28A) : Interest -Usance interest -Paid to holding company for delayed payment for purchase of goods was not part of purchase price, but interest–Liable to deduct tax at source-DTAA-India –Singapore, [S. 40(a)(i), 195, Art.7, 11]

S. 2(22)(e) : Deemed dividend- Group companies – Amount received and also paid each other for the purpose of business transactions -No amount has gone to share holder- Addition is held to be not justified.

S. 2(15) : Charitable purpose – Medical reliefs- charging nominal fee for providing services exemption cannot be denied , proviso is held to be not applicable [ [S.11, 12AA ]

S. 2(14)(iii)(b) : Capital asset-Agricultural land- 8KM- Distance from Municipal limits to area in which land is situated is to be considered and not distance between particular land and municipal limit-Matter remanded. [S.45, 54F]

S.45: Capital gains – Business income – Merely holding shares for a short period will not convert capital gain into business income-.This would be contrary to be legislative mandate which itself provides that investment held for less than 12 months is to be termed as short term capital gain-If the assessee has two portfolios, one for “Investment” and other for “Trading” and if the investments are out of own funds and not borrowed funds, the gains have to be assessed as short term capital gains [ S.28 (i)]