S. 37(1) : Business expenditure–Pendency of constitutional validity of proviso to Rule 9A- Matter remanded to CIT(A) to decide on merits. [R. 9A]

S. 36(1)(iii) : Interest on borrowed capital-loan was used for acquiring or construction of assets that were used for earning taxable income- Interest expenditure is held to be allowable.

S. 32 : Depreciation–Public roads treated as building and allowed depreciation-Optical fibres used exclusively for computer configuration were part of computer system and thus eligible for higher rate of depreciation.

S. 28(i) : Business income-Income from house property- Construction of shopping malls-Commercially exploit property by way of complex commercial activities and, it was not a case of letting out property simplicitor-Rental income is assessable as business income. [S. 22]

S. 28(i) : Business income–Sub lease of property–Assessable as business income and not as income for other sources. [S. 56]

S. 12A : Registration–Trust or institution-Registration cannot be denied merely on ground that secretary of society was getting lease rent for land given to society for running school or his wife who had requisite qualification was teaching in school and was being paid salary. [S. 13]

S. 10(23C) : Educational institution–Mere spending a meagre amount, out of total income derived by trust, towards distribution of clothes to relatives of students-Exemption cannot be denied. [S.10(23C)(iiiad), 12A, 12AA]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–Representative assessee-Representative assessee not only represents an income which has directly arisen or accrued in India but also that which has indirectly arisen or accrued in this country, through a business connection-International Cricket Council chose India, Pakistan and Sri Lanka to co-host World Cup 1996 – Order of Tribunal is seta side. [S. 5(1), (5(2), 160, 161, 163, 194E, 201(1)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–development of Basic engine-design a new 3 valve cylinder head for improvement of fuel efficiency, performance and meeting Indian emission standard–Payment is not royalty -DTAA-India–Australia. [S.9(1)(vi), Art. 6(2)]

S. 4 : Charge of income-tax–Capital or revenue-Compensation awarded under Motor Vehicles Act or Employees’ Compensation Act in lieu of death of a person or bodily injury suffered in a vehicular accident, is a damage and not an income and cannot be treated as taxable income- Not liable to deduct tax at source on compensation and interest accrued thereon. [S. 194A]