S. 40(a)(ia) : Amounts not deductible-Deduction at source-Project competition method- Provision for expenses–When the payee is not known it is not possible to deduct tax at source on estimated expenditure–Not liable to deduct tax at source–No disallowance can be made. [S. 145]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident–Purchase of bearings–Not liable to deduct tax at source –No disallowances can be made-DTAA-India-USA. [S. 195, Art. 26(3)]

S. 37(1) : Business expenditure–Provision for salary-Sixth Pay Commission -liability on account of payment of revised enhanced salary had neither accrued nor crystallized during relevant assessment year, impugned- Provision made is not allowable as deduction.[S. 145]

S. 28(i) : Business loss- Actor -Advance of money to production house -Write off of advances as non recoverable – Film was not successful- Loss is allowable as business loss or as business expenditure. [S. 37(1)]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions–On same of facts exemption was granted earlier years -Denial of exemption is held to be not valid – Payment to trustee- No evidence to show that the payment was excessive or unreasonable -Denial of exemption is not proper. [S.11, 12A, 13(1)(c)(d)]

S. 11 : Property held for charitable purposes – Activities of publication of newspaper and complementary publication to provide information regarding Government welfare schemes to general public-Not carrying on activity in nature of trade or commerce- Eligible exemption. [S. 2(15), 10 (23C(iv)]

S. 80IA :Industrial undertakings – Infrastructure development- Commission agent of BSNL- Providing basic telecommunication services as defined u/s 2(k) of TRAI Act, 1997 to its customers- Entitled to deduction [ S.80IA(4) (ii), Indian Telegraph Rules 1951 and TRAI Act, 1997]

S.37(1): Business expenditure – Capital or revenue -Sub -lease -Payment made to vacate the premises – Through negotiation assessee acquired some kind of an enduring right of possession over occupied area of said premises surrendered to them by those occupants—It had incidents of permanence— Expenditure is capital in nature .

S. 226 : Collection and recovery – Modes of recovery – illegal Recovery – Strictures against DCIT- Adjustment of refund -High Court was not justified in its remarks against the DCIT and in issuing directions that (i) ‘deadwood’ should be weeded out (ii) personal costs of Rs. 1.5 lakh should be imposed (iii) adverse entry should be made in the Annual Confidential Report (iv) Denial of promotion etc. The directions were wholly unnecessary to the lis before the Court & are expunged [ S.234]

S. 80HH :Newly established industrial undertakings –Income -Profits and gains-Deduction has to be computed on the profits and gains without deducting therefrom ‘depreciation’ and ‘investment allowance’ & not from income as computed under the Act. S. 80AB is prospective. [ S.80AB, 80I]