S. 37(1) : Business expenditure-Deduction for professional fees paid to Individual for professional services was to be allowed only to the extent of services rendered for the benefit of the Assessee and not for other group entities.

S. 36(1)(vii) : Bad debt – Deposits written off for premises taken on lease for business purposes was allowable as a deduction. [S. 36(2)]

S. 36(1)(va) : Any sum received from employees – Delayed payment of employee’s contribution to Provident fund is allowable as a deduction if the same is paid within the due of filing the Return of Income. [S. 139(1)]

S. 14A : Disallowance of expenditure-Exempt income–No disallowance could be made where no exempt income was actually earned by the Assessee during the year. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income–Disallowance cannot be made if there is no tax free income. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Only investment from which assesse has earned exempt income to be considered for disallowance. [R. 8D]

S. 14A : Disallowance of expenditure–Exempt Income-Assessee used its own interest free funds for making investment in shares and securities yielding exempt income-No disallowance could be made-Strategic investments made by assessee with its group/associated companies–to be considered for disallowance under section 14A-Disallowance under section 14A cannot exceed exempt income. [R. 8D]

S. 12AA : Registration-Trust or institution-CIT(A) cannot question registration granted by CIT(E). [S. 251]

S. 12AA : Registration – Trust or institution – Power of the CIT is to register or refuse to register the Trust but cannot qualify the Trust as ‘general public utility trust’- Tribunal directed the trust to be registered under section 12AA of the Act without any qualification. [S. 2(15), 11, 12, 13]

S. 10(1) : Agricultural Income–Assessee was able to prima facie establish that possession of agricultural land was acquired during the year- Entitle to exemption.