S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income earned during the relevant period , no disallowance can be made [ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income – AO cannot straight way make disallowance without rejecting the disallowance computed by the assessee [ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income –Satisfaction to be recorded by the Assessing Officer ,it cannot be substituted by recorded satisfaction of Commissioner of Income tax ( Appeals) [ S. 251, R.8D ]

S. 14A : Disallowance of expenditure – Exempt income –Rule 8D cannot be held to be applicable retrospectively and cannot be applicable to pending assessments [ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income – Stock in trade – Controlling interest – Principle of apportionment-Only that expenditure which is “in relation to” earning dividends can be disallowed- AO has to record proper satisfaction on why the claim of the assessee as to the quantum of suo moto disallowance is not correct . [ R.8D ]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions -High rate of profit margin- Hefty salary to related trustees, scholarship in foreign currency , use of luxury cars without maintaining the log book , denial of exemption was held to be justified – Donation to another trust was held to be application of income [ S. (2(15) , 11, 12, 13 ]

S. 12AA : Procedure for registration –Trust or institution-Application of income – Funds were diverted to non charitable purposes hence cancellation of registration was held to be valid [ S.11, 12A ]

S. 12AA : Procedure for registration –Trust or institution- Impart education in the field of nursing is entitle to registration [ S .2(15) ]

S.12AA: Procedure for registration- Trust or institution Promotion of State Cricket – Entitle to registration [ S.2(15) , 12A ]

S. 12AA : Procedure for registration –Trust or institution-
Alleged misuse of funds is not a ground for refusing registration [ S.11, 12A]