S. 37(1) : Business expenditure-Transport and hiring charges-Deletion of ad-hoc disallowance of 10 per Cent is affirmed and disallowance of 2% on account of wage and labour charge is affirmed.

S.37(1): Business expenditure-Capital or revenue-Remove defect in title of immoveable property-One time final payment of disputed amount of impact fees to Municipal Corporation-Damages or penalty or interest-Allowable as revenue expenditure. [S. 32, Municipal Corporation Act]

S. 37(1) : Business expenditure-Professional fees-Negotiating debt funding-Tax deducted-Payment through banking channels-, Recipients did not file return is not sufficient to disallow payment

S. 32AD : Investment in new plant or machinery in notified back ward areas in certain States-Additional investment allowance-Notification specifying backward area relates back to 1-4-2015-Entitle to additional investment allowance-The notification is neither taxing nor exempting the tax either in full or in part to any class of assessees but it only specifies the details requisite for implementation of the section-Issuance of notification by the CBDT is only pursuant to the delegated legislation, but not a conditional legislation-Circular No. 19 of 2015, dt. 27-11-2015 (2015) 379 ITR 19 (St), Notification dated 20-7-2016(2016) 386 ITR 6 (St))

S. 23 : Income from house property-Annual value-Stock in trade-Notional value-Amendment is prospective. [S. 22, 23(5)]-

S. 11 : Property held for charitable purposes-Imparting education-Activities in nature of trade, commerce or business-Separate Books account and balance-sheet is not maintained-Matter remanded for verification. [S. 2(15), 11(4A),12, 12A 13(8)]

S. 11 : Property held for charitable purposes-Objective of providing low-interest loans to downtrodden individuals-Interest charged over and above bank interest-Huge profit-Micro-Finance Activity-Business activity-Not entitle to exemption.[S. 2(15) 11(4A) 12

S. 10 (23C): Educational institution-Proviso to Section 143(3) requiring withdrawal of approval before denial of exemption on ground of contravention-Assessing Officer has no jurisdiction to reopen assessment.[S. 10(23C)(vi), 143(3)]

S. 10(1) : Agricultural income-Soil placed on trays-Agricultural activity-Mushroom is an agricultural product-Income from sale of mushrooms constitutes agricultural income.[S. 2(IA)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-Resident-Dependent agent permanent establishment-Offshore supply of equipment-No fixed place-Addition under section. 44AB is deleted-Interest is consequential in nature-DTAA-India-France [S. 444BBB 234B, Art. 5]