S. 50C : Capital gains-Full value of consideration-Capital asset-Stamp valuation-sale of leasehold rights in land-Industrial plot of land was allotted by MIDC under a lease agreement-Provision of S.50C is not applicable-Value of industrial plot of land was less than actual consideration-First and second proviso is applicable.[S.2(14), 45, 50C(1)]

S. 40(a)(ia): Amounts not deductible-Deduction at source-Short deduction of TDS-No disallowance can be made-Action can be taken under section 201. [S. 194C, 194J]

S. 36(1)(iii) : Interest on borrowed capital-Capital work in progress-Out of own funds-No disallowance of interest can be made on borrowed amount.[S. 37(1)]

S. 32AD: Investment in new plant or machinery in notified back ward areas in certain States-Effective date of commencement of provisions of S. 32AD and Notification No. 61/2016/F.No. 142/13/2015, dt. 20th July, 2016-Memorandum Explaining the Provisions in the Finance Bill, 2015 as well as the CBDT Circular No. 19 of 2015, dt. 27th Nov., 2015 clearly mention that the provisions of S 32AD are applicable from asst. year 2016-17 for a period of five years. The provisions of S. 32AD are applicable for the investment made in financial year 2015-16 i.e. AY. 2016-17.

S. 12AB: Procedure for fresh registration-Not registered under Rajasthan Public Trust Act, 1959-Fair chance should be given to cure the defect-Both the appeals relating to registration under S. 12AA and 80G are restored to the CIT(E) for afresh consideration.[S. 12AA, 80G]

S. 12AA : Procedure for registration-Trust or institution-Hospital-Letting of shops-Income is used for the objects of the Trust-Cancellation of registration is not valid. [S.12A, 12AA(3)]

S. 12A : Registration-Trust or institution–Service of show cause notice under S. 12A(1)(ac) (iii) by putting on e-portal only-Notice not served on the registered email id of the assessee as per the provisions of S. 282 of the Act-Rejecting of application is not valid-Application filed in Form No 10B cannot be sustained-Application is restored back to CIT(E ) to decide on merits. [S. 12A(1)(ac)(iii), 282, Form No 10AB]

S. 10(10AA) : Leave salary-Super annuation benefits-Employee of the Central Government or State Government-Maharashtra State Electricity Board (MSEB )-Transferred to power companies-Grand-fathering-Assessees have to be treated as employees of a State Government and eligible for S.. 10(10A) and 10(10AA) benefits.. [S.10A, Electricity Act, 2003, 131, 133 (2)]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Payment for supply of software-The payments received by the assessee is for the supply of software do not fall within the scope of art. 12(3) of the India-China DTAA. In the absence of PE the income is not taxable in India. DTAA-India-China.[Art. 12(3)]

S. 4 : Charge of income-tax-Capital or revenue-Interest subsidy-Technology upgradation fund scheme-Ground raised first time-Issue is restored to the AO for fresh adjudication as per provisions of law [S. 2(24)(xviii)]