S. 48: Capital gains-Mode of Computation-Payment made to settle a rival title claim and remove an encumbrance is deductible while computing capital gains. Amount directly paid by the purchaser to banks for discharge of mortgage is deductible and cannot be taxed in the hands of the assessee. [S. 45, 48(1)]

S. 37(1): Business expenditure-Settlement of patent dispute-Compensation paid for settlement of civil litigation is allowable business expenditure and not hit by Explanation 1 to section 37(1). [S. 37(1), Explns. 1 & 3]

S.37(1): Business expenditure-Royalty-Use of land-Power of attorney-Allowable as a deduction. [S.2(47)(vi)]

S. 32: Depreciation-Non-compete fee not eligible for depreciation [S. 32(1)(ii)]

S. 32: Depreciation-Goodwill arising on slump sale-The matter was restored to the Assessing Officer to obtain valuation from the DVO, determine the value of land and building, attribute the balance consideration to goodwill and allow depreciation thereon. [S. 2(42C), 32(1)(ii), 50B, 56(2)(vii)(b)]

S. 12AB: Procedure for fresh registration-Alleged violation of section 13(1)(c) not relevant at registration stage-CIT(E) was directed to grant the exemption. [S. 11, 13(1)(c)]

S. 12AA: Procedure for registration-Trust or institution-Charitable Trust-Amendments to the trust deed-Delay in filing return-Cancellation of registration unjustified.[S. 12AA(4), 13, 139]

S. 12AA: Procedure for registration-Trust or institution-Cancellation of registration-Registration cannot be cancelled on issues already decided by the Tribunal.[S.11, 12AB(4), 13]

S. 12A: Registration-Trust or institution-Rental income from trust property-Proviso to S. 2(15) not attracted-The order of the CIT(E) was set aside with a direction to grant registration under section 12A and restore the provisional registration. [S.2(15) 12AB]

S. 12: Voluntary contributions-Trust or institution-Corpus Donations-Voluntary corpus donations cannot be denied merely because the trust requested donors to contribute towards the corpus. [S. 11, 132]