S. 35 :Scientific research – Deduction on account of purchase of ‘assets’ for its in-house R&D facility is allowable as deduction. Objective behind exclusion clause in S. 43(4)(ii) is to be that expenditure on scientific research should be incurred on research actually carried out by assessee in-house and assessee should not spend money in acquiring rights in or arising out of scientific research carried on by some other person. [ S.35(1)(iv) , 43(4)(ii) ]

S. 14A : Disallowance of expenditure – Exempt income –Sufficient interest free own funds to cover investment in shares and mutual funds etc –No disallowance can be made [ R.8D(2)(ii) ]

S. 11 : Property held for charitable purposes – Advance of loan to another trust where the common trustees had no substantial interest and advance not being investment there is no violation hence exemption cannot be denied and registration cannot be refused .[ S.10(23C)(vi),13(1)(d) ]

S. 194H : Deduction at source – Commission or brokerage -Trade discount granted to principal distributor could not be held as commission and, hence not liable for deduction of tax at source .

S. 194C : Deduction at source – Contractors – Installation of set-top box by ISPs amounts to works contract and as no technical expertise is required provision of S.194J cannot be applicable .[ S.194J ]

S.80IA:Industrial undertakings – Infrastructure development-Developer- Contractor- Business of construction/development of Infrastructure facilities such as roads and providing necessary and crucial components of Railway system is entitle to deduction as developer . [ S.80IA(4) ]

S. 69A : Unexplained money -Search -Jewellary- Belonged to a wealthy family and jewellery was received on occasions from relatives, excess jewellery was very much reasonable addition was held to be not justified .

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable -Salaries paid to Doctors who were reputed professionals in their fields could not be held to be excessive and unreasonable hence disallowance of 15% of salaries was deleted .

S.37(1): Business expenditure –Keyman insurance policy in the name of directors is held to be allowable as business expenditure .

S. 10(10A): Commutation of pension -Employees of statutory corporations cannot be regarded as employees of State or Central Government and exemption is not available , however as the assessee was under bonafide belief and discharged its obligation u/s 192 , proceedings u/s 201(1), 201(IA) were quashed [ S.192, 201(1), 201(IA) ]