S. 80IA : Industrial undertakings–Manufacture-Converting herbs into a certain herbal product by manual process-Purchase of plant and machinery and consumption of electricity are not mandatory requirements-Entitle to deduction.

S. 80IA : Industrial undertakings–Telecommunication business-Net interest earned is eligible for deduction.

S. 80G : Donation-When registration is granted application u/s. 80G(5) cannot be rejected.[S. 12AA, 80G(5)]

S. 68 : Cash credits–Capitalisation fee–Statement on oath-Search and seizure – Undisclosed income was disclosed–Addition of capitalization fee is held to be not valid. [S. 132(4), 158BC]

S. 68 : Cash credits–Share capital-Two foreign nationals–Directors of the company-Identity of share applicants and genuineness of money infused is established- Deletion of addition is held to be justified.

S. 45(4) : Capital gains–Retirement-Allotment to a partner of his share in assets of partnership after deduction of liabilities is not transfer – Not liable to capital gains tax. [S. 2(47)(vi)]

S. 37(1) : Business expenditure–Cost of print and publicity–cost of production- Feature films -Expenditure were incurred after production and certification of film by Censor Board was received – Not governed by Rule 9A- Allowable as revenue expenditure. [R. 9A 9B]

S. 36(1)(vii) : Bad debt-Held to be allowable though the principal amount debited to the principal amount never appeared as a debt on account of trade.

S. 28(i) : Business income-Income from house property–Shopping mall -Commercial exploitation-Facilities and services-Income derived by assessee by letting out shops in mall had to be assessed as income from business and not as income from house property. [S. 22]

S. 14A : Disallowance of expenditure-Exempt income–AO cannot reject the disallowances offered by the assessee, without adducing any reasons. [R. 8D]