S. 11 : Property held for charitable purposes-Application of income -Income from house property – Rental income derived from Trust -No Standard deduction at 30 percent is not allowable–Repairs and maintenance expenses incurred on trust property being meant for objects of charitable trust is to be allowed in computing income of the Trust as application of income. [S. 24(a)]

S. 2(22)(e) : Deemed dividend- Loans to shareholder – Business of money lending – loan from two companies which were substantially involved in business of money lending- Addition cannot be made as deemed dividend. [S. 2(22)(e)(ii)]

S. 263 : Commissioner-Revision of orders prejudicial to revenue- Stamp valuation–Accepting the claim as per agreement– Provision of S.50C is applicable-Revision is held to be valid. [S. 45, 50C]

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable–Ad hoc disallowance of 50 % of rent–Held to be not justified.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest paid to resident–Failure to deduct tax at source-recipient has shown as income-Second proviso to section 40(a)(ia) inserted by Finance (No. 2) Act, 2004, with effect from 1-4-2005 is curative and has retrospective effect- No disallowances can be made. [S. 201]

S. 37(1) : Business expenditure–Capital or revenue–Replacement of spare parts of machinery -Held to be revenue expenditure.

S. 36(1)(iii) : Interest on borrowed capital-Advance of security deposit – Substantial interest free funds–No disallowances can be made.

S. 32 : Depreciation-Unabsorbed depreciation-Carry forward and set off – Unabsorbed depreciation pertaining to assessment year 1997-98, was allowed to be carried forward and adjusted after lapse of 8 years. [S. 32(2)]

S. 28(i) : Business loss- Share transactions-Registered stock exchange-Prevailing market prices–STT paid-Produced contract rates, demat statements and bank statements-loss cannot be disallowed as bogus. [S. 68]

S. 28(i) : Business loss–Advances not recoverable-Write off Advances given to suppliers for purchase of raw materials- Failure to produce evidence to show that the advances were paid in the ordinary course of business-Not allowable as business loss. [S. 36(1)(vii), 36(2)]