S. 115JA : Book profit – Provision for wealth-tax could not be included for purposes of computation of book profit.

S. 80G : Donation–Paid through bank and receipt in the name of assessee-Held to be allowable as deduction.

S. 56 : Income from other sources – Excess share premium- second level subsidiary of a company in which public are substantially interested – Addition cannot be made. [S. 2(18), 2(24), 56(2)(viib), R. 11UA]

S. 54F : Capital gains- Investment in a residential house–Property was co-jointly owned in name of wife–Could not be treated as absolute owner–Exemption cannot be denied. [S. 45]

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable-Interest paid for outstanding credit balance-No interest was charged from debtors- Interest paid could not be disallowed.

S. 37(1) : Business expenditure-Discounts to customers who purchases the medicine from C& F agents-Direct bearing on potential turnover of company-expense would fall within expression wholly and exclusively for purpose of business- Allowable as business expenditure.

S. 14A : Disallowance of expenditure-Exempt income-Difference between value of actual investment and value as on balance sheet is not dividend income- Addition cannot be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds available-Presumption that interest free funds for investments yielding tax free income in preference to borrowed funds-Disallowance of expenditure cannot exceed exempt income. [R. 8D]

S. 11 : Property held for charitable purposes–Application of income-Capital gains-Sale of bonds and debentures- Failure to disclose investment made by way of purchase of mutual fund- Deduction is not allowable from capital gains–Accumulation of income- Failure to file any details with regard to availability of funds for making investment in modes specified under section 11(5), claim could not be allowed. [S. 11(5), 45]

S. 11 : Property held for charitable purposes-Application of income -Income from house property – Rental income derived from Trust -No Standard deduction at 30 percent is not allowable–Repairs and maintenance expenses incurred on trust property being meant for objects of charitable trust is to be allowed in computing income of the Trust as application of income. [S. 24(a)]