S. 28(v): Business income-Partner-Interest, salary, bonus, remuneration-Chartered accountant-Depreciation-Business expenditure-Any expenditure incurred wholly and exclusively for earning such income, including depreciation, is allowable under sections 32 and 37 [S. 32, 37(1)]

S.28(i) : Business income-Accrual-Real income theory-Royalty-Mere deduction of TDS does not conclusively establish accrual of royalty income where ultimate collection is uncertain-Revenue recognition can be postponed under AS-9 where collectability is doubtful-Addition of royalty as undisclosed professional income deleted-However, amount of TDS claimed as credit deemed as income under section 198 and taxable-Relief restricted to royalty amount minus TDS claimed.[S. 5, 145, 198, 199, R. 37BA]

S. 28(i): Business income-Estimation of income-Deferred revenue expenditure, not income [S. 4, 145]

S. 23: Income from house property-Annual value-Used for self-occupation-Partly let out-Entire issue was remanded back to the Assessing Officer for determining ALV, taking into consideration only that part of the building which was let out by the assesse.[S. 22]

S. 12AB: Procedure for fresh registration-Incomplete application-No registration under the Rajasthan Public Trust Act, 1959 Cancellation of provisional registration-Order of cancellation of registration was set aside to the file of CIT(E) and also held that provisional registration shall continue to remain valid till such decision.[S.12A]

S. 12AB: Procedure for fresh registration-Commercial activities and non-charitable application of income-Rejection of application-Enquiry at registration stage is limited to examining genuineness of charitable objects and activities, and as assessee’s objects and activities were found charitable, CIT(E) was required to grant registration-Order of CIT(E) was set aside. [S.2(15), 11, 12]

S. 12AB: Procedure for fresh registration-Engaged in training students without a systematic curriculum and collecting fees-Not conducting a formal education/scholastic education-Rejection of application was affirmed.[S. 2(15), 11]

S. 12A: Registration-Trust or institution-Procedure for fresh registration-Opportunity of being heard-Assessee trust did not reply to 3 Notices of hearing-Registration application rejected-No adjournment filed-No justifiable reasons-In Appeal, Tribunal dismissed the appeal and upheld the S. 12AB and 80G Rejection Order.[S.12AB, 80G (5)(iii)]

S. 11 : Property held for charitable purposes-Excess expenditure over income-Accumulation of income-Applied charitable purpose-Denial of exemption is not valid. [S.11(1)(a), 12A]

S. 11: Property held for charitable purposes-Denial of exemption-Trust or institution-Investment restrictions-Assessee gave interest free loan advances-Held, Charitable cannot hold surplus except in the prescribed mode in S. 11(5)-Held, AO cannot change status of the Asseessee from ‘charitable’ to ‘non-charitable’ for minor violation-CIT(A) should see where the surplus funds was applied-matter remanded. [S.11(5), 12, 13]