S. 37(1) : Business expenditure – fine/penalty levied upon it by European commission for violating European union competition laws by way of accepting non-compete settlement amount from a European company- Payment could not be disallowed as per Explanation 1 to S. 37(1) of the Act – Allowability of claim as business loss- Matter remanded for verification . [ . General Clauses Act ,1897 , S .3(38) , Indian Evidence Act , 1872 , S. 57(1) , Art . 13 ]

S.32 :Depreciation- Factory building- Depreciation was allowable on cost of river bank embankment and renovation thereof.

S. 32: Depreciation- Good will- Amalgamation- Purchase, consideration paid in excess of net value of assets and liabilities of amalgamating company was to be treated as goodwill- Entitle to depreciation .

S. 28(i) : Business income – Income from other sources- Interest income on fixed deposits – Extending guarantee to Government authorities -Assessable as income from business and not as income from other sources .[ S.56 ]

S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed exempt income- Average of investments which have yielded exempt income is to be considered for computation of S. 14A disallowance. .[ R.8D ]

S. 12AA : Procedure for registration –Trust or institution-Contract with unrelated party for achieving purpose of charitable object – Denial of exemption is not justified – Withdrawal of registration is held to be not valid- Registration granted earlier under S. 12A is restored. [ S.2(15) 11 , 12A,13(3) ]

S. 4 : Charge of income-tax – Subsidy – Sales tax exemption, subsidy was to be treated as capital receipt. [ S. 28 (i) ]

S. 57 : Income from other sources-Deductions–Co-Operative Housing Society-Administrative expenses are allowable against the interest on fixed deposit. [S.56]

S. 56 : Income from other sources–Registration of agreement– Consideration received preceding year and possession was also taken–Amended provision is not applicable–No addition can be made taking in to value of difference between value on the date of registration and actual consideration. [S. 45, 56(2)(vii)(b)]

S. 271(1)(c) : Penalty–Concealment–Method of accounting-Project completion method-Year of allowability of expenses–Mere making the claim which is not sustainable in law will not amount to furnishing in accurate particulars of income-Penalty cannot be levied. [S. 145]