S. 80G : Donation-Registration of institution-Renewal of registration-Assessee granted registration under Section 12AA-Amount utilized for construction of Public Library is for charitable purpose-Failure to file form 10B-Denial of renewal of registration on that ground is not justified-Directed the respondents to grant renewal of registration under section80G(5)(vi) of the Act. [S. 2(15), 11, 12AA, 80G(5)(vi), Art. 226]

S. 69A : Unexplained money-Compulsory Scrutiny-Difference between the value of plant and machinery shown in the Balance Sheet on 31-03-2004 and opening balance shown on 01-04-2004 in the books of accounts-Assessee firm failed to explain the difference in the investments in plant and machinery-Addition is confirmed, [S. 144, 260A]

S. 68: Cash credits-Credit transfer received by other family members and group concerns could not be assumed to be assessee’s undisclosed income where AO failed to establish that assessee was de facto owner of bank accounts of various recipients. [S. 132, 260A]

S. 56 : Income from other sources-Capital or revenue receipt-Capital work in progress-Interest earned prior to commencement of business on funds received in form of share capital for specific purpose of acquisition of coal mines-Part of capital cost and to be treated as capital work-in-progress.[S. 4, 57(iii), 260A]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Fees for technical services-Reimbursement to non-resident AEs-Revenue unable to prove that payments are FTS-Disallowance deleted [S. 9(1)(vii), 195]

S.37(1): Business expenditure-Capital or revenue-Payments made by an assessee for the use of a logo or trademark for a particular period, aimed at business improvement/expansion, qualify as revenue expenditure.[S. 260A]

S. 37(1) : Business expenditure-Bogus expenses-Double taxation-Two constituent entities already offered to tax certain amounts out of receipts of aggregate amounts from assessee-Same amount not liable to be taxed in the hands of the assessee as it would amount to double taxation.[S. 260A]

S. 36(1)(vii) : Bad debt-It is sufficient for the debt to be written off as irrecoverable in the assessee’s accounts to be eligible for deduction, without the need to prove that the debt has actually become bad. [S. 36(2), 260A]

S. 36(1)(vii) : Bad debt-Payments made by a chit fund company to cover defaults by chit holders, ensuring the continuation of the chit cycle, can be treated as bad debts. [S. 260A]

S. 36(1)(va): Any sum received from employees-Employees’ contributions to PF and ESIC, made after the due date, was not allowable under section 36(1) (va) of the Income Tax Act-Delay of 690 days-No reasonable cause-Delay is not condoned [S. 253, 260A]