S. 40(a)(ia) : Amounts not deductible-Deduction at source-Certificate by Chartered Accountant-Recipient included the income in their assessment-Certificate in Form No 26A is furnished-Disallowance is deleted-Cannot be treated as an assessee in default. [S. 194A, 201(1)]

S. 37(1): Business expenditure-Bogus sub-Contractor-10 percent disallowance is confirmed-Reassessment is affirmed. [S. 147, 148]

S. 37(1) : Business expenditure-Donation to Red Cross Society and Japan relief Fund-Nature of gift cannot be allowed as deduction under section 37(1). [S. 80G]

S. 37(1): Business expenditure-Expenditure on marketing survey-Statement was retracted-Cross examination is not provided-Allowable as deduction. [S. 133A]

S. 35 : Expenditure on scientific research-Accommodation entries-Survey-Office bearers of done society admitted that in the course of survey and also before Settlement Commission that they are providing accommodation entries by way of bogus donations in an organised manner-Not entitle to deduction-Notice issued under section 143(2) is valid-Reassessment is valid. [S. 35(1)(ii), 133A,143(2), 147, 148]

S. 24 : Income from house property-Deductions-Commercial property-Property in respect of which assessee claimed interest under section 24(b) was only a commercial property-Restriction on deduction as provided in 2nd proviso to section 24(b) would not be applicable. [S. 22, 24(b), 71B, 143(1), 154]

S. 24 : Income from house property-Deductions-Interest on loan to repay the original loan-Entitle to deduction-Rental income is offered as to tax as income from house property-Interest paid on loan borrowed for acquisition of property is allowable as deduction. [S. 22, 24(b)]

S. 10(23C) : Educational institution-Retrospective withdrawal of approval-Approval can be withdrawn only from the date of issuance of the show cause notice-Chairperson-Occupying the house property in lieu of her services-Provision for vehicles for members of the Society-Withdrawal of exemption is not justified. [S. 10(23C)(vi)]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-No evidence was available to ascertain the precious nature of actual services rendered-Matter remanded to the Assessing Officer-DTAA-India-USA. [S. 90, art. 12(4)]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-No right in the domain name-Income received from domain name registration is not royalty-Web hosting-Does not constitute royalty-Conducting conference for two days cannot be considered as fixed place of business and excluded from the definition of Permanent Establishment- DTAA-India-UAE. [S. 90, art. 5(3), 7, 12]