S. 56 : Income from other sources–Shares at premium-Valuation of shares–FMV of shares was estimated after considering intangible assets like goodwill, know-how, patents, copyrights, trademarks, licences, franchises, etc-Re valuation of shares by the AO is held to be not justified. [S. 52(viib)]
S. 54F : Capital gains-Investment in residential house-Purchase– Constructed in phased manner and payments was linked to stage of construction, it is a purchase and not construction of new asset-Exemption is allowable. [S. 45]
S. 37(1) : Business expenditure-Parking fees–Ad hoc disallowance of 20% disallowance–Books of account not rejected– Disallowance is held to be not valid. [S. 143(3)]
S. 37(1) : Business expenses-Provision-Provision for expense was based on scientific and reasonable basis and the liability to incur the same was certain, deduction is allowable.
S. 37(1) : Business expenditure-Festival expenditure–Books of account not rejected-Disallowance of 25% of festival expenses cannot be disallow when books of accounts were duly audited and no discrepancy was found. [S. 145]
S. 36(1)(iii) : Interest on borrowed capital–Rental premium equivalent to 3 months monthly rent-lease rent–Excessive or un reasonable-Matter remanded to AO for reconsideration. [S. 40A(2), Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.]
S. 32 : Depreciation-Set-off of unabsorbed depreciation against its current year income from house property and income from other sources. [S. 22,32 (2), 56]
S. 28(i) : Business income-Charge of income-tax–Mutuality– Commercial concern–Principle of mutuality is not applicable-Income is chargeable as business income. [S. 4]
S. 28(i) : Business income-Letting out shopping mall/business centres by providing host of services/facilities/amenities– Income derived assessable as business income and not as income from house property. [S. 22]
S. 11 : Property held for charitable purposes-Educational institution-Income received from sale of property – Application for application of income was not made – Denial of exemption is held to be justified. [S. 11(2)]