S. 14A : Disallowance of expenditure – Exempt income -Foreign investments- Dividend suffered taxation in India – No disallowance can be made – Investments in Indian companies not yielding exempt Income —Has to be excluded . [ R.8D(iii) ]

S. 14A : Disallowance of expenditure – Exempt income – Not earning any exempt income during relevant period — No disallowance can be made .[ R.8D ]

S. 12AA : Procedure for registration –Trust or institution- Commissioner is directed to decide a fresh on verification of objects and genuineness of activities in accordance with Law in light of documents which assessee is required to submit before him. [ S.2(15) , 11 ]

S. 10A : Free trade zone – Export turnover – Total turnover – Enhanced profits to be considered for deduction- Export proceeds received in India beyond time-limit but within time allowed by Reserve Bank circular to be considered for deduction .[ S .40(a) (ia), 194I ]

S. 9(1)(i): Income deemed to accrue or arise in India – Business connection – Contracts for supply and service of machinery in connection with setting up of plant — Thirty-five per cent. of profit attributed to permanent establishment – Accepting existence of permanent establishment —Liable for interest DTAA- India -Austria [ S.234B , Art .5(2) ]

S. 5 : Scope of total income – Accrual – Membership fees —Mercantile system of accounting -Pertaining to subsequent years —Taxable in year to which it pertains. [ S. 28(i) ,145 ]

S. 4 : Charge of income-tax – Application of income – Sale consideration received for sale of shares — Taxable as income [ S. 28(i), 37(1) , 60 , 61 , 62 , 63 , 64 ]

S. 4 : Charge of income-tax -Capital or revenue receipt — Non-compete fee — Capital receipt – Cannot be assessed as income [ S.28(i) ]

S. 4 : Charge of income-tax – Refundable Security deposit — Capital receipt cannot be assessed as income [ S.28(i)]

S. 2(22)(e):Dividend – Deemed dividend- Trading transactions – Cannot be assessed as deemed dividend .