S. 56 : Income from other sources – No addition should be made where satisfactory explanation with necessary evidences is provided in case of sums received from relatives. [S.56 (2)(v)]

S. 50C : Capital gains-Full value of consideration-Stamp valuation –Charitable Trust- Price approved by Charity Commissioner has to be followed, where the Assessee is a public charitable trust. [S. 45]

S. 43B : Certain deductions only on actual payment – Contributions to provident fund and employees’ state insurance – Contribution deposited beyond prescribed time limit provided in respective Acts but before due date of filing return under income tax Act is allowable.

S. 37(1) : Business expenditure -Corporate entity – even if no business was carried out during the year, expenditure incurred by it has to be allowed.

S. 36(1)(iii) : Interest on borrowed capital – AO cannot step into the shoes of the businessmen – Interest is allowable on borrowed funds used for the purpose of business.

S. 32 : Depreciation – Injection moulding machine falls under the category of ‘Moulds’ and therefore shall qualify for higher rate of depreciation.

S. 32 : Depreciation – Depreciation is allowable non-compete territory rights – Department’s action of not filing an appeal against the CIT(A) favourable order in earlier year gives finality to the dispute.

S. 14A : Disallowance of expenditure – Exempt income – No automatic disallowance can be made[ R.8D].

S. 14A : Disallowance of expenditure – Exempt income -Disallowance has to be made where the assessee cannot furnish any evidence to prove that the investments were made in earlier years.[ R. 8D]

S. 10AA: Special economic zones -Assessee manufacturing different items in different units – No dispute about unit wise profitability declared by assesse – Remand report accepting cost of goods were reconciled – Addition made by AO to be deleted.