S.32: Depreciation- Stay order from Court- Factory could not run due to stay order of Court- Depreciation cannot be disallowed.

S. 23 : Income from house property – Annual value – Interest free security deposit – Interest offered as income from other sources-Notional interest on interest free deposit cannot be considered to determine annual letting value of property- Notional addition would amount to double taxation .[ S.22, 23(1)(b) ]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions -Trust was restrained from converting shares held by it in private limited company to other forms of permissible investment by virtue of restraint order of High Court in case of settlors from whom it had received shares, it could not be held liable for violation of provisions of S. 11(5) read with S. 13(1)(d) for holding shares for more than prescribed period- Exemption cannot be denied .[ S.11(5) ,113(1)(d) ]

S. 11 : Property held for charitable purposes – Accumulation of income did not exceed 15 per cent of income -Entitle exemption [ S.12A, 263 ]

S. 10A : Free trade zone – For computing deduction if export turnover is arrived at after excluding certain expenses, said expenses should also be excluded from total turnover.

S. 10(10C) :Public sector companies – Voluntary retirement scheme -ICICI Bank- Early Retirement Option Scheme- Entitled to exemption even though the assessee had filed revised return under S. 139(5), for relevant year beyond prescribed time period. [ S.139(5) ]

S. 4:Income chargeable to tax-Capital or revenue-Income from other sources-Interest on funds deposited with banks – Prior to commencement of commercial operations will be in nature of capital receipt and will be required to be set off against pre-operative expenditure capitalized under head capital work-in-progress -Cannot be taxed as income from other sources. [ S.5, 56,145 ]

S.2(14)(iii): Capital asset-Agricultural land – Beyond 8 Kms from nearest Municipality -Nursery- Land record showing the land as agricultural land – Sale consideration is exempt from tax .[ S.45 ]

S.2(14)(iii): Capital asset-Agricultural land- Adventure in the nature of land – Land was sold after a period of 16 months-Land shown as agricultural land in revenue records- Fact that said land had been sold to an industrial unit and had potential to be used for industrial purpose, could not be a determinative factor to treat profit earned by assessee on sale of agriculture land as business income- The intention of the purchaser cannot be the determinative factor to treat the profit earned by the assessee on sale of agriculture land as business income. .[ S.28(i), 45 ]

S. 69C : Unexplained expenditure -Cash payments – Amount offered as undisclosed income in return of mother-Deletion of addition is held to be justified .