S. 25B : Income from house property-Arrears of rent-Assessable on receipt basis – Provision is not retrospective. [S. 23]

S. 22 : Income from house property-Deductions-Municipality tax- Cheque issued before end of previous year-Encashment subsequently -Relates back to date of issue–Entitle to deduction. [S. 24]

S. 22 : Income from house property -Income from other sources- Arrears rent – Assessable as income from house property. [S. 25B, 56]

S. 14A : Disallowance of expenditure-Exempt income–Failure to consider contention and factual error–Investment from own funds -Matter remanded to the AO. [S. 254(1), R. 8D]

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income shown during the year – No disallowance can be made. [R. 8D]

S. 12AA : Procedure for registration –Trust or institution-Cancella1Amendment in 2004 is enabling cancellation of registration is not retrospective- Cancellation cannot be made with retrospective effect – No allegation of fraud notice for reassessment is held to be bad in law. [S. 12A.]

S. 12AA : Procedure for registration–Trust or institution-Bogus donation–Appellate Tribunal remanded the matter for grant of opportunity to assessee to cross examine representative of donor -High Court quashing cancellation of registration on the ground that single instance of bogus donation cannot be the sole ground for cancellation of registration- Order of High Court is set-aside and directed the Commissioner to decide on merits. [S. 12AA(3), 80G(5) (vi)]

S. 11 : Property held for charitable purposes-Statutory authority to manage Ports—Main object is to enable commerce and economy of country—Entitle to exemption–Withdrawal of exemption as local authority–Exemption can be claimed as charitable Trust-Delay in filing the application was condoned as the assessee was enjoying exemption as local authority which was withdrawn. [S. 2(15) 10(20), 12, 12AA]

S. 2(22)(e) : Deemed dividend- Loans from companies–Not beneficial shareholder in lender companies–Cannot be added as deemed dividend – Provision is not applicable.

S. 260A : Appeal – High Court -Defunct companies-The fact that the assessee company stands dissolved as a defunct company u/s 560(5) of the Companies Act, 1956 does not mean that income-tax proceedings & appeals become infructuous. The liability against such companies has to be dealt with in accordance with s. 506(5) proviso (a) of the Companies Act and Chapter XV of the Income Tax Act which deal with “liability in special cases” and “discontinuance of business or dissolution”[ S.176, Companies Act , 1956 S, 560(5) ]