S. 11 : Property held for charitable purposes-Claim under wrong head-Due to bonafide mistake-Matter remanded. [S. 11(2), 12AA, 119(2)(b), 139(4A), Art. 226]

S. 11 : Property held for charitable purposes-Charitable purpose- Statutory corporation constituted by State Government with charitable objects-Entitled to exemption- Fees collected for objects is held to be not taxable -Entitled to depreciation-Contribution to pension fund is held to be deductible. [S. 2(15), 32, 36(1)(vi)]

S. 10AA : Special economic zones-Manufacture-Activity of sieving to separate dust particles. [Special Economic Zones Act, 2005. S. 2(r)]

S. 10A : Free trade zone-On back office work and preparation of applications for patent in U. S. A.-Entitle to exemption.

S. 10(23C) : Educational Institution-Surplus utilized for educational purposes-Entitled to exemption-Revenue should have withdrawn the petition when identical issue was decided in favour of assessee in earlier year. [S. 10(23C)(iiiab), 254(1)]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Export of garments-Inspecting garments, ensuring quality and export- Income received by non-resident not taxable in India-DTAA -India -Hong Kong [S. 260A, Art , 12 ]

S. 4 : Charge of income-tax-Accrual of income-Mercantile System of accounting-Retention money on contract-Cannot be included as income. [S. 5, 145]

S. 2(42C) : Slump sale-Capital gains-Exchange Assets transferred to subsidiary Company in accordance with scheme approved by High Court – No slump sale for purposes of capital gains tax. [S. 45, 50, 50B, Sale of Goods Act, 1930, S 2(10), Transfer of Property Act, 1882, S.54, 118, Companies Act, 1956, 391, 394]

S. 2(22)(e) : Dividend-Deemed dividend-Not a share holder of lender company–Loan not assessable as deemed dividend.

Interpretation -Natural Justice – Audi Alteram Partem – Right of hearing – Cross -Examination – Matter remanded to first Appellate Authority .[IT Act , 1961 , S. 226 (3) ]