S. 37(1) : Business expenditure – Disallowance is restricted to 10 % as against 20% disallowance affirmed by the CIT (A) .

S. 36(1)(iii) :Interest on borrowed capital -Onus on assessee to establish that interest-bearing loan not used to extend interest-free loan — Matter remanded.

S.28(i): Business Loss — Import duty —Non-payment of duty would have resulted in substantial losses for assessee and damaged reputation in market — Loss is allowable as business Loss out of commercial expediency .[ S.37(i) ]

S. 14A : Disallowance of expenditure – Exempt income – Not recording of satisfaction – No disallowance could be made- Period during which the lockdown was in force shall stand excluded for the purpose of working out the time limit for pronouncement of orders, as envisaged in rule 34(5) of the Income-tax (Appellate Tribunal) Rules, 1963 . .[ . S.254(1), R.8D ]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions –Excess amount charged refunded – Neither a case of violation or diversion of fund – Entitle to exemption -Application of income- Normal commercial principle should be applied [ S.11, 12A, 13(1)( c ), 13(2)(g), 144, 145 ]

S. 12AA : Procedure for registration –Trust or institution- Registered address- Matter remanded [ S.80G]

S. 11 : Property held for charitable purposes – Merely because some profit arising from activity — Entitle to exemption . [ S. 11(2) , 12A ]

S. 10(37) : Capital gains – Agricultural land – With in specified urban limits – Enhanced compensation – Entitle to exemption [ Land Acquisition Act, 1894, S.28 ]

S. 10(1) : Agricultural income – Coconut Trees and Mango orchard on land – Income derived is assessable as agricultural income .

S. 271E : Penalty – Repayment of loan or deposit -Loans from directors – Reasonable cause – Repayment by demand draft – levy of penalty is not justified .