S. 23 : Income from house property – Annual value – Notional interest on interest-free security deposit cannot be added while computing annual value [ S.23(1) (b), 23(1)(ii) ]

S. 10(20) :Local authority – Urban improvement Trust constituted under Rajasthan Urban Improvement Act , 1959 is not local authority , hence not entitle to exemption – The functional test” as laid down in UOI v. R.C. Jain, (1981) 2 SCC 308 is not applicable after amendment of section 10 (20) of the Act by Finance Act , 2002 . [ S.10(20A ]

S. 2(22)(e):Deemed dividend- Merely because the shares are held by the minor son of the assessee and the loan is received by the assessee it cannot be established that assessee is the beneficial shareholder of 10% or more –Loan cannot be assessed as deemed dividend- Alternatively the amount received was advance rent in the Course of business hence cannot be assessed as deemed dividend .

S. 54 : Capital gains – Profit on sale of property used for residence-Purchased new residential house before sale of another residential house owned -Investment is made within the stipulated period and the investment was more than the capital gains earned- Entitle to exemption. [ S.45,54F ]

S. 45 : Capital gains –Long term capital loss- Shares sold to a group concern in off market transaction at same price as was quoted on stock exchange on relevant date, loss incurred from said sale transactions was to be allowed as long term capital loss.[S.2(29B ]

S. 35 : Scientific research expenditure – Retrospective cancellation of approval, donor’s claim of deduction could not be denied as at the time of receipt of donation institute was benefitted by the approval as per S.35(1)(ii). [ S. 35(1)(ii) ]

S. 14A : Disallowance of expenditure – Exempt income –Net of interest-Benefits of netting of interest under rule 8D(2)(ii) be allowed without even emphasising on need of having any inextricable link between interest earned and interest paid prior to 2-6-2016. [ R.8D(2)(ii) ]

S. 11 : Property held for charitable purposes – -Sports association- – Merely because some sponsorship was accepted from a private company for Asian games and Youth Olympic games, exemption cannot be denied .[ S.2(15) ]

S. 254(1) : Appellate Tribunal- Additional ground on question of law can be raised before Tribunal even in second round of appeal – Royalty received from overseas subsidiary from Egypt shown as taxable in the original return of income – Though the issue of taxability was not raised in the first round of appeal, additional ground was raised before the Tribunal in the second round of appeal – Tribunal allowed the claim and set aside the matter for verification- DTAA-India – Egypt [ Art. 13 ]

S.68: Cash credits – Suspicious transaction in shares- Penny stocks -Capital gains – Increase of 432% with in six months without any economic or technical basis -Purchasers could not be located-Transfer deeds did not bear the names or other particulars of the sellers-Prices on exchange was manipulated by two brokers in a systematic manner -Seller , broker , purchasers are located in different cities – Purchase and sale transactions in shares have been executed off market without in fact even fulfilling the reporting requirements in respect thereof under the regulatory frame work .- Additions confirmed as cash credits treating the transactions as bogus . [ S.45, 54F ]