S. 36(1)(iii) : Interest on borrowed capital–Provision for interest liability–Held to be allowable as deduction-Rule of consistency- It is not open to revenue to accept a judgment in the case of one assessee, and appeal, against the identical judgment in the case of another. It was held that such a differential treatment on the same set of facts was not permissible in law. [S. 43B]

S. 32 : Depreciation-Investment depreciation reserve-co-operative society-Bound by the Reserve Bank of India directives-Business of banking-Matter remanded.

S. 28(i) : Business income-trading in shares-Professionally managed Portfolio Management Services (PMS)-large number of scrips were traded and period of holding at times was as short as few days- Assessable as business income and not capital gains. [S. 2(13), 2(14), 45]

S. 28(i) : Business income-Maintenance charges from tenants were not received-Addition is deleted. [S. 23]

S. 14A : Disallowance of expenditure-Exempt income– Disallowance cannot exceed in excess of actual expenditure. [R. 8D]

S. 14A : Disallowance of expenditure – Exempt income – Investment in tax free bonds – No nexus between interest bearing funds and investment made in tax free bonds- Exemption cannot be denied. [S. 10(15)(iv)]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions–Advancing money for acquiring land and construction of building–Delay in execution of sale deed-Advance of money to employee trust-No violation-Denial of exemption is held to be not valid–Application of income-entitle to depreciation though the cost of asset was allowed as application of income. [S. 11, 12AA, 13(1)(d), 32]

S. 11 : Property held for charitable purposes-Trade association-Surplus from Goa Feast–Feast receipt and interest from bank-Entitle to exemption. [S. 2(15)]

S. 11 : Property held for charitable purposes-Charging huge amounts for sponsorship fees from corporate entities on advertisement and free passes–Organisation for networking of entrepreneurs is not an educational institution-Membership is not open to general public-Contributors and beneficiaries are different–Not entitle to exemption. [S. 2(15)]

S. 10(37) : Capital gains-Agricultural land-With in specified urban limits–Compulsorily acquiring of land for public purpose- Provision meant for removing hardship–Two years prior to acquisition was used for agricultural purposes-Agricultural Officer had certified land to be agricultural land-AO cannot deny the exemption. [S. 2(14)(iii)(a)(b), 45]