S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest paid to resident–Failure to deduct tax at source-recipient has shown as income-Second proviso to section 40(a)(ia) inserted by Finance (No. 2) Act, 2004, with effect from 1-4-2005 is curative and has retrospective effect- No disallowances can be made. [S. 201]

S. 37(1) : Business expenditure–Capital or revenue–Replacement of spare parts of machinery -Held to be revenue expenditure.

S. 36(1)(iii) : Interest on borrowed capital-Advance of security deposit – Substantial interest free funds–No disallowances can be made.

S. 32 : Depreciation-Unabsorbed depreciation-Carry forward and set off – Unabsorbed depreciation pertaining to assessment year 1997-98, was allowed to be carried forward and adjusted after lapse of 8 years. [S. 32(2)]

S. 28(i) : Business loss- Share transactions-Registered stock exchange-Prevailing market prices–STT paid-Produced contract rates, demat statements and bank statements-loss cannot be disallowed as bogus. [S. 68]

S. 28(i) : Business loss–Advances not recoverable-Write off Advances given to suppliers for purchase of raw materials- Failure to produce evidence to show that the advances were paid in the ordinary course of business-Not allowable as business loss. [S. 36(1)(vii), 36(2)]

S. 12AA : Procedure for registration –Trust or institution- Old denomination notes was found during search on premises of assessee’s bank where management of assessee had effective control- Scholarship to several students and had produced several documents in support of said scholarship payments- Non-appearance of certain students for verification – Purchase of plot of land and built a school building – Registration cannot be denied. [S. 11, 12A, 13]

S. 11 : Property held for charitable purposes-Application of income – Payment to another charitable trust–Exemption cannot be denied merely because the done trust has not spent the donation during the year itself–Interest accrued on fixed deposit – Deemed application of income–Exemption cannot be denied .[ S.11(2) 12, 12A , 13(3) ]

S. 4 : Suit property was bought by a registered conveyance deed and there was also no challenge to registered deed conveying title to plaintiffs, vague and unsubstantiated pleas claiming purchase of property from siphoning off of family business by defendant could not be allowed to be sustained. [S. 2(a)]

S. 271AAA : Penalty-Search initiated on or after 1st June, 2007–Manner of earning of earning of undisclosed income was substantiated–Deletion of penalty is held to be justified. [S.132(4)]