S. 37(1) : Business expenditure – Circular No. 5/2012 dated 01-8-2012 ( 2012) 346 ITR 95(St) prohibiting pharmaceutical companies from giving any monetary benefits to doctors, was applicable from assessment year 2013-14 onwards- As the addition was deleted consequently penalty levied was also deleted . [S.271(1)(c)]

S. 14A : Disallowance of expenditure – Exempt income – The AO has to first record satisfaction having regard to accounts of the assessee that the claim made by the assessee with regard to non-incurrence of any expenditure for the purpose of earning income is incorrect before proceeding to make any disallowance. [ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income – No disallowance can be made if no exempt income is earned. [R.8D ]

S. 12AA :Procedure for registration –Trust or institution – Registration granted cannot be denied in the subsequent years when there is no change in the objcts of the assessee only on the prseumtion that proviso to S.2(15) is applicable [2(15) ]

S. 11 : Property held for charitable purposes – The denial of exemption was held to be justified as the Trust was running schools and institutes on a commercial basis howvver donations made by the assessee to another charitable trust should be regarded as application of income towards the object of the trust. [S. 2(15) 13]

S.10(27):Co-operative society- Schedule Castes or Schedule Tribes –Matter remanded for fresh disposal .

S. 9(1)(v) : Income deemed to accrue or arise in India – Interest – Guarantee fee earned by the assessee on providing guarantee to various banks to extend credit facilities to its Indian subsidiaries would not fall within the term interest and also in view of clause 3 of Article 23 of the India UK treaty in the absence of any specific provision dealing with corporate or bank guarantee recharge, had to be taxed in India as ‘Income from Other Sources’. Also amount paid by AE for seconding its employee was taxable in India or not was remanded back to determine the nature of services rendered in light of the secondment agreement-DTAA-India –UK . [S. 9(1)(vii)]

S. 9(1) Income deemed to accrue or arise in India – Company situated in UAE but having effective control and management situated in Germany could not claim benefit of the India-UAE tax treaty but it can claim benefits of the India-Germany tax treaty.-DTAA- India UAE Germany [ Art .4,8,29 ]

S. 6(5) : Residence in India – Deemed residence – Where status of assessee was taken as resident for computing his business income, his status would remain the same for salary income earned outside India.[S.5]

S.80IA : Industrial undertaking —Power generation plant – Manufacturer of yeast setting up plant for generation of steam power from biogas , generation of cooling power from ammonia absorption refrigeration plant for maintaining temperature of yeast is entitled to deduction