S. 4: Charge of income-tax –Capital or revenue -Entertainment subsidy received under Uttar Pradesh Government scheme for promotion of construction of multiplexes is a capital receipt.[S.2(24)]

S. 2(15): Charitable purpose – Applicability of proviso to S. 2(15) of the Act is a question of fact and should be decided on facts of the case and no generalization is possible. [ S.11, 12 ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Bogus purchases- Hotel business- information from sales tax authorities -Hawala Traders – Assessee offering 15% of gross profit in the course of assessment proceedings with a view to buy peace and unending litigation which was accepted by the Assessing Officer without making any inquiry – Commissioner revising the order on the ground that on there was no discussion in the order of Assessing Officer and the Assessing Officer limiting addition under S.69C only on basis of GP ratio is held to be not justified -Tribunal affirming the revision order -High Court affirmed the order of the Tribunal . [ S.69C ]

S. 254(1) : Appellate Tribunal – Duties- Passing the Ex -parte order without ascertaining whether notice was duly served and assessee had avoided intentionally and deliberately to attend case of hearing would result in miscarriage of justice -Ex -parte order is seta side. [ R. 24 ]

S. 197 : Deduction at source – Certificate for lower rate – Certificate issued on the basis of tentative re-working of assessee’s accounts formed a prima facie opinion and suggested collection of tax at reduced rate of 1 per cent is justified – Not considering the projection of losses for reduced rate is help to be proper .[ S.197(2) ]

S. 80G : Donation -Renewal of certificate – Commissioner is not justified in denying renewal application during relevant assessment year without there being any new circumstances.[ S.11, 12A ]

S. 68 : Cash credits – Share capital -Identity of the share applicant was established – Additions cannot be made on surmises without conducting any further inquiry .

S. 54 : Capital gains – Profit on sale of property used for residence -Consideration that arose in hands of HUF on sale of capital asset had been invested for purchase of new residential house in name of some of its members instead of assessee (HUF)- Deduction is allowable .[ S.45 ]

S.37(1): Business expenditure -Ad -hoc disallowance of 5% – Tribunal is justified in holding that where the assessee had furnished names and PAN numbers of all vendors to whom it had paid repair and maintenance charges for their services disallowance of ad-hoc disallowance of 5% of expenses is held to be not justified .

S. 36(1)(iii) :Interest on borrowed capital -loan amount was used for acquiring or construction of assets that were used for earning taxable income- Interest expenditure is allowable as deduction.