S. 37(1) : Business expenditure-Asset management company– Date of approval given by SEBI was to be regarded as date on which assessee set up its business and was ready to commence said business- Expenses incurred for purpose of business after said date of approval were eligible for deduction. [S. 3, Regulation 21 of the SEBI (Mutual Fund) Regulations, 1996]
S. 12AA : Procedure for registration–Trust or institution- Possibility of misuse of donations-Approval u/s 80G cannot be denied. [S. 80G ]
Precedent—Appeal–Merger–Dismissal of appeal on ground of low tax effect-High Court order does not merge in order of Supreme Court.
S. 245D : Settlement Commission–Full and true disclosure-Surrender of income in the course of search- Retraction after two years- Application for settlement showing undisclosed income much lower figure–Report of revenue was not considered- Settlement Commission determining the income higher than the disclosed income–Order of Settlement Commission was quashed. [S. 132(4), 245C, 245D(4)]
S. 245D : Settlement Commission–Restoration of matter to Settlement Commission by High Court-Computation of period of 18 months-Period taken by assessee in pursuing remedy before Court and period during which order stayed to be excluded. [S. 245D(4A)]
S. 226 : Collection and recovery-Stay-Pendency of appeal before CIT(A)-Non speaking order-Garnishe notices to Banks was quashed and attachment of Bank account was lifted. [S. 226(3)]
S. 80P : Co-operative societies–Co–Operative Bank-Assessee must substantiate that its main object of incorporation continues to be fulfilled In relevant assessment year-Benefit is not allowable solely on basis of certificate of registration-Assessee is not entitled to deduction if it ceases to be of specified class of society in any year even if it was eligible for initial years. [S. 80P(4)]
S. 80IB(10) : Housing projects- Allotment of more than one unit to members of same family-Allottees Later removing partitions and combining two flats into one-No breach of condition that each unit should not be of more than 1000 Sq. Ft. — Entitled to deduction.
S. 69 : Income form undisclosed-Bogus purchases-The CIT(A) is not justified in enhancing the assessment to disallow 100% of the bogus purchases-The only addition which can be made is to account for profit element embedded in the purchase transactions to factorize for profit earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against such bogus purchases. [S. 251]
S. 64 : Clubbing of income-Minor child-Guardian of minor is representative assesse-Income of minor assessable in hands of guardian. [S. 2(7), 2(31), 160(1)(ii), 148]