S. 36(1)(iii) : Interest on borrowed capital-Interest-free advances-Mixed funds-Where assessee possessed sufficient interest-free funds from sundry creditors, it is presumed that advances are made from such funds; disallowance of interest deleted. [S. 260A]

S. 32 : Depreciation-Lease transactions-For an assessee in the business of leasing, letting out an owned asset constitutes its use for the purpose of business, entitling it to depreciation.[S. 260A]

S. 32 : Depreciation-Optional claim-Claim for depreciation was optional prior to insertion of Explanation 5 to Section 32(1)-Order of Tribunal affirmed. [S. 260A]

S. 28(iv) : Business income-Value of any benefit or perquisite-Converted into money or not-Cash advances not taxable under said section-CIT(A) had merely re-evaluated the same material that was before the Assessing Officer. It was thus held that no violation of Rule 46A(3) had occurred. [S. 37(1), S. 250, Rule 46A of the Income-tax Rules, 1962]

S. 28(i) : Business loss-Share transactions-The Assessing Officer failed to examine the supporting contract notes, which were in the department’s own custody-Order of Tribunal affirmed.[S. 260A]

S.14A : Disallowance of expenditure-Exempt income-Mixed funds-Where both interest-free and interest-bearing funds are available with an assessee, it is to be presumed that investments are made from the interest-free funds-no disallowance of interest was warranted under either section 14A or section 36(1)(iii). [S. 36(1)(iii), 115JB]

S. 14A : Expenditure in relation to exempt income-AO’s satisfaction-Disallowance without recording reasons for dissatisfaction with assessee’s suo motu disallowance is invalid-Order of Tribunal affirmed.[S. 260A, R. 8D]

S. 11 : Property held for charitable purposes-Denial of exemption-Violation of S. 13-Denial of exemption under S. 11 is restricted only to that income of the trust which was used for the benefit of prohibited persons, and not to the entire income of the trust. [S. 13]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Retrospective amendment-No liability to deduct tax at source on payments to non-residents which became taxable only by a subsequent retrospective amendment to the Income-tax Act, 1961-Not liable to deduct tax at source. [S. 195, 260A]

Right of Persons with Disability Act, 2016.

S. 76 : Service Matter-Promotion –Post of Tax Assistant-Restoration of disability status-Retrospective Promotion-Subsequent acquisition of eligibility does not entitle employee to retrospective promotion from a date when he was not eligible. [S. 2(t), (p), (r) (e), 57]