S. 36(1)(iii) :Interest on borrowed capital -Business expenditure -Advance to subsidiary companies out of borrowed funds who further gave said advances to SPVs of assessee who utilised for carrying on business activities of construction and development of airports – No business activities under taken – Expenditure incurred on finance charges is held to be not allowable as deduction- there is evidence of nexus of borrowing funds being invested in sister concern and assessee sources of income can only be earning dividend income, the entire interest income has to be considered for disallowance under section 14A under rule 8D2(i)/(ii) for the impugned assessment year. [ S.14A, 37(1),R.8D(1)(ii) ]

S.28(i):Business loss- Value of shares held as stock- Devalued in books to evade tax – Claim being notional loss not allowable as business loss [ S.145 ]

S. 23 : Income from house property – Annual value – When part of the house is occupied during the year and part is let out only actual rent received by the assessee has to be considered. [ S. 22 ]

S. 17 : Perquisite -Employee Stock Option Plans- Tax arises in hands of employees, on date of allotment of shares and not on date of exercise of option. [ S.15, 17(2), 192, 201(1A) ]

S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed amount of exempt income and if there is no exempt income, no disallowance can be made. [ R.8D ]

S. 11 : Property held for charitable purposes – Application of income – Giving funds to various organisations which are carrying out activities of relief to poor or medical relief will constitute application of income .[ S. 2(15) 12AA,13 ]

S. 10(37) : Capital gains – Agricultural land – With in specified urban limits – Interest on compensation- Interest awarded under section 28 of Land Acquisition Act, 1894 on enhanced compensation paid for acquisition of agricultural land, would be eligible for exemption. [ S.56, Land Acquisition Act, 1894 ,S.28 ]

S. 12A : Registration –Trust or institution- Corpus donations received by trust with specific directions by donors to be applied towards specific purpose be treated as capital receipts- Corpus donation cannot be taxed though the trust is not registered. [ S. 2(24) iia),11, 12AA, ]

S. 11 : Property held for charitable purposes -Education – Providing hostel facility to students is an essential component of education institution and also an aid for attaining educational object- Entitle to exemption .[ S.2(15) 12, 12AA ]

S. 11 : Property held for charitable purposes – Application of income – Giving funds to various organisations which are carrying out activities of relief to poor or medical relief will constitute application of income .[ S. 2(15) 12AA,13 ]