S. 43D : Public financial institutions–Method of accounting-Accurval of income–Real income theory-Interest on NPAs-Even though the special provision in S. 43D for taxing interest income on NPAs on receipt basis does not apply to NBFCs, it does not mean that NBFCs have to offer interest on bad or doubtful debts to tax on accrual basis. Such interest is not taxable on the real income theory. [S. 145]

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Payment gateway charges paid to a bank for swiping credit cards are in the nature of fees for banking services and not “commission” or “brokerage”-Not liable to deduct tax at source- No disallowances can be made.[S.194H, 195(3)]

S. 14A : Disallowance of expenditure-Exempt income–Not recorded the satisfaction for not accepting the disallowance- Deletion of addition is held to be justified. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-In the absence of any exempt income- No disallowance can be made. [R. 8D]

S. 271B : Penalty-Failure to get accounts audited-Accommodation entries–Gross amount received to be considered for computing monetary limits of Rs. 40 lakhs and not the commission earned by him –levy off penalty is held to be justified. [S. 44AB]

S. 194C : Deduction at source–Contractors-Payments to artists-Participation in reality show–Payment made do not fall within the ambit of S.194J as professional fees. [S.194J, 201(1)]

S. 80P : Co-operative societies–Entitle deduction in respect of interest earned from co-operative societies.[S. 80P(2)(a)(i), 80P(2)(d)].

S. 80IB : Industrial undertakings-Production and sale of mosquito repellents-In absence of any other rational basis for allocating income for computation of amount eligible for deduction, ratio of excisable value of output of non-eligible unit vis-a-vis that of eligible units would constitute a good basis for bifurcation of income Matter remanded.

S. 80G : Donation–Matter remanded to CIT(E) for verification of genuineness of activities of trust.[S. 80G (5)]

S. 68 : cash credits–Bank statement is not books of account Sale of shares–Addition on the basis of bank statement treating the statement as books of account is held to be not valid–Natural justice–Statement of third parties cannot be relied upon without giving an opportunity of cross examination. [S. (2(12A), 44AA, 45, 69, 69A, 143(3)]