S. 28(i) : Business income-Business expenditure-Software development-Expenses, depreciation and set off of brought forward loss and unabsorbed depreciation-Matter remanded to Commissioner (Appeals). [S. 68]

S. 22 : Income from house property-Income from business-Rental income from leasing of flats-Assessable as income from house property. [S. 28(i)]

S.14A : Disallowance of expenditure-Exempt income-Own funds are more than value of investment in firm, mutual funds and shares-No disallowance can be made-Charging net amount to profit and loss account-Lump sum disallowance of 15 lakhs was held to be proper. [R. 8D(2)(ii), 8D(2)(iii)]

S. 12AA : Procedure for registration-Trust or institution-Fund to promote welfare and recreational activities of personnel of Delhi Police-Entitle to registration. [S. 2(15)]

S. 11 : Property held for charitable purposes-Amount spent on construction of buildings for its medical college would be treated as application of income for objects of trust and, hence, would qualify for exemption under section 11-factum of incurring such expenses by way of cash alone could not be a ground to hold that those expenses were related to non-specified purpose-Denial of exemption was held to be not justified-No violation. Section. 13 of the Act. [S. 2(15), 12A, 13, 69C, 132(4)]

S. 11 : Property held for charitable purposes-Authority constituted under Urban Planning and Development Act-Local authority-Acquisition and Development of Land-Discharging statutory and sovereign function-Activities having direct nexus with obligations-Charitable activities-Entitled to exemption. [S. 2(15), 10(20A), 12A]

S. 10B : Export oriented undertakings-Production and Export of pasteurized crab meat-procurement of non-living dead crab and then process into chemical mixed pasteurized crab meat in a series of manufacturing process-Fall under the new definition of manufacture-Deduction allowable. [S. 2(29BA)]

S. 10A : Free trade zone-Export turnover-Foreign currency-Export proceeds within six months-General permission to realise export proceeds within 12 months of export-Matter remanded.

S. 10(23C) : Educational institution-Surplus re deployed regularly for educational purposes-Lese rent paid to trustees neither excessive nor un reasonable-Denial of exemption. Was not justified [S. 10(23C)(vi), 13(1)(c)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-If an Indian agent has been paid an arm’s length remuneration, nothing further could be taxed in hands of Assessee-DTAA-India-Mauritius [Art, 5(4)]