S. 54 : Capital gains-Profit on sale of property used for residence-Ownership of land-Housing complex was situated on a piece of land which was occupied by Co-operative Housing Society under a long term lease- Exemption cannot be denied in respect of sale of flat in a society. [S. 45]

S. 37(1) : Business expenditure-Advertisement expenses-Held to be revenue expenditure.

S. 32 : Depreciation-Unabsorbed depreciation-Set off of- Benefit of carry forward and set off of unabsorbed depreciation for assessment year 1997-98 is allowed against income of assessment year 2005-06. [S. 32(2)]

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds were utilized for making exempt investment-No disallowance can be made.[R. 8D].

S. 11 : Property held for charitable purposes-Golf facilities to its members for promotion of sport-No element of activity of being in nature of trade, commerce or business-Interest earned from banks or financial institutions on investment of surplus funds arising from charitable activities was exempted from tax. [S. 2(15)]

S. 11 : Property held for charitable purposes-Educational Institution-Res judicata-Denial of exemption is held to be not justified. [S. 10(23C)(vi), 12AA]

S. 4 : Charge of income-tax-Bonus shares–Cannot be assessed as income.

S. 271B : Penalty-Failure to get accounts audited–Audit report is made available before completion of assessment–No loss to revenue–Levy of penalty is held to be not valid. [S. 44AB]

S. 271(1)(c) : Penalty–Concealment-Share capital with premium- Detection by investigation wing- Survey-Filing of revised return after survey is not with bonafide intention-Levy of penalty is held to be justified.

S. 271(1)(c) : Penalty–Concealment–Failure to show the interest income due to inadvertent mistake of accountant – Levy of penalty is not justified.