S.40(a)(ia):Amounts not deductible – Deduction at source – Purchase of raw materials- Not liable to deduct tax at source [S.194C ]

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident –Professional fees paid to foreign company to know about tax law applicable in that Country could not be taxed in India as per Art 14 of the OECD Model Tax Convention hence not liable to deduct tax at source.

S. 37(1) : Business expenditure – Interest under Jharkhand VAT Act, 2005 being compensatory nature is allowable as deduction. Penalties being not compensatory nature is held to be not allowable [ Jharkhand VAT Act , 2005 S. 30(1), 30(3), 30(4)(d),63(3) ]

S. 23 : Income from house property – Annual value – Though property remained vacant during relevant previous year benefit of S.23(1)(c ) is available . [ S.23(1) ( c ) ]

S.23: Income from house property- Annual value -Deemed rent to be computed on the basis of Municipal rateable value and not on the basis of market rent [ S.22 ]

S. 4 : Charge of income-tax -Personal effects- Sale of painting received by gift from father is held to be capital receipts – Amendment by Finance Act 2007 w.e.f 1-04 -2008 is prospective in nature . [ S.2(14),28(i) ]

Hindu Succession Act, 1956 (HUF Law):
Hindu Succession (Tamil Nadu Amendment) Act, 1989 –

S.29A: Married daughters are not co-parceners-As per the amendment Act only daughters of a coparcener who were not married at the time of commencement of the amendment of 1989 are is entitled to claim partition in the Hindu Joint Family Property. Married daughters are not coparceners and are not entitled to institute suit for partition and separate possession .

S. 80IC: Special category States –Initial year- The fact that the assessee has earlier availed deduction u/s 80IA & 80IB is of no concern because deduction u/s 80IC is available from the “initial year” i.e. the year of completion of substantial expansion. The inclusion of period for the deduction availed u/s 80IA & 80IB, for the purpose of counting ten years, is provided in sub-section (6) of S. 80IC and it is limited to those industrial undertakings or enterprises which are set-up in the North-Eastern Region. [ S. 80IA,80IB ]

S. 80IA :Industrial undertakings – Independent unit- Merely because the both units have a common excise registration , common electricity and water connection, exemption as separate unit cannot be denied .

S. 45 : Capital gains – Gift- Notional addition -Transfer of shares in a Public Ltd Co was doubted as there was no proper documentation- Revenue challenged the genuineness of Transaction-Matter was set aside for ascertain the genuineness of the Transaction and decide according to law . [ S.2(47),47(iii), 56(2)(viia) ]