S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission payment-Mere rendering of service of procurement of export orders by a non-resident company for Indian company does not fall in category of managerial/consultancy services-Not liable to deduct tax at source-DTAA-India-Japan. [S. 40(a)(1), 195]

S. 28(i) : Business loss-Trading activities in stock and commodities-Provision for loss mark to market loss on trading in derivative-Allowable as business loss. [S. 37(1)]

S.14A : Disallowance of expenditure-Exempt income-Net interest could be disallowed-Book Profit-Computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to computation as contemplated under section 14A read with rule 8D. [S. 115JB, R. 8D]

S.14A : Disallowance of expenditure-Exempt income-Interest free funds is more than investments made-No disallowance of interest can be made-Administrative expenses-Disallowance is restricted only to investments giving rise to exempt income. [R. 8D]

S. 11 : Property held for charitable purposes-Exemption denied and income assessed as income from other sources-All incidental expenditures laid out by assessee wholly or exclusively for purpose of making or earning such income were also to be allowed under section 57(iii). [S. 10(23C)(iiiab), 12A, 12AA, 57(iii)]

S. 10B : Export oriented undertakings-Matter remanded by the Tribunal to the Assessing Officer examine the claim under section 10A of the Act-CIT (A) allowed the claim under section 10B-CIT (A) was not justified is allowing the deduction u/s. 10A of the Act. [S.10A, 254 (1)]

S. 10 (23C): Educational institution-Demerger-Financial help to hospital-No violation of provision-Withdrawal of exemption is not justified. [S. 10(23)(vi)]

S. 10 (23C) : Educational institution-Solely for educational purpose and not for earning profits-Substantially financed by Government-Eligible for exemption under section 10(23C)(iiiab) of the Act-Explanation to clause 10(23C)(iiiab) w.e.f. 1-4-2015 setting out minimum threshold of 50 per cent for institution to be financed by Government for claiming benefit of exemption under section 10(23C)(iiiab) is prospective in nature. [S. 10 (23C)(iiiab)]

S. 10(10C) : Public sector companies-Voluntary retirement scheme-Bank employee-Exit Option Scheme-Ex gratia amount-Tax deducted at source-Not entitle to exemption. [R. 2BA]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of software to Indian distributors-Not in the nature of copy right-Not taxable as royalty-DTAA-India-Sweden. [Art. 12]