S. 54F : Capital gains-Investment in a residential house- purchasing land before period of one year prior to sale of another capital asset- Not entitle to exemption. [S. 45]

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability–Difference between creditors recorded in his books vis-a-vis balance in books of creditors-Sales and purchases not doubted–Addition is held to be not justified.

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits -Purchase of jaggery from farmers- Disallowance is held to be not justified. [R. 6DD]

S. 40(b)(v) : Amounts not deductible–Partner–Remuneration– Book profit-Despite quantum not specified in partnership deed remuneration paid to partners is held to be allowable.

S. 37(1) : Business expenditure–Business commenced-Expansion of existing business-Preoperative expenses such as salaries and wages, PF and ESI contribution, travelling expenses, and like other general administrative expenses etc is held to be allowable. [S. 35D(1)(ii)]

S. 37(1) : Business expenditure–Capital or revenue-ROC fees paid for increase in authorised capital for issuance of bonus shares was revenue expenditure-Matter remanded for verification.

S. 14A : Disallowance of expenditure-Exempt income-suo moto disallowance–Further disallowances made by the AO is held to be not justified. [R. 8D(2)(iii)]

S. 12AA : Procedure for registration–Trust or institution- Grants and charging management fees-Medical relief for patients and creating awareness about HIV and AIDS for purpose of its eradication are charitable activities-Entitle to registration. [S. 2(15)]

S. 12AA : Procedure for registration–Trust or institution- Registration cannot be refused on the ground that all initial trustees had taken citizenship of foreign country–Order of CIT(E) rejection of registration and application u/s 80G is set aside. [S. 80G , FEMA, 1999, S.6(5) Indian Trust Act 1882 , S. 10, 60, 73]

S. 271(1)(c) : Penalty -Concealment-Bad debt-Mere claim of bad debts not written off in books of accounts does not call for levy of penalty for furnishing of inaccurate particulars. [S.36(1)(vii)]