S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Amalgamation-Agricultural income-tax Loss-The only provision applicable was section 12 of the Kerala Agricultural Income-tax Act, 1991, which did not authorise set-off in this case, the assessee was rightly found to be ineligible for the benefit by the Tribunal-Further, the assessee had not made the claim before the Income-tax Officer under the 1961 Act in the computation of income from manufacture of rubber under rule 7A of the 1962 Rules and that Officer had no occasion to consider the tenability of the claim-Revision application was dismissed. [Kerala Agricultural Income-tax Act, 1991, S. 2(7), (20), 3, 12, 48, 54, 60]

S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Amalgamation-Agricultural income-tax Loss-The only provision applicable was section 12 of the Kerala Agricultural Income-tax Act, 1991, which did not authorise set-off in this case, the assessee was rightly found to be ineligible for the benefit by the Tribunal-Further, the assessee had not made the claim before the Income-tax Officer under the 1961 Act in the computation of income from manufacture of rubber under rule 7A of the 1962 Rules and that Officer had no occasion to consider the tenability of the claim-Revision application was dismissed by High Court-Order of High Court affirmed. [Kerala Agricultural Income-tax Act, 1991, S. 2(7), (20), 3, 12, 48, 54, 60 Art. 136.]

S. 56: Income from other sources-Pre-operative expenses: raising loan from its directors-Technical fee and other expenses inclusive of payment for land paid out of loan-Funds not immediately required deposited in bank-Interest earned thereon adjusted against project expenditure and deficit transferred to pre-operative expenses carried forward. Funds not lying as surplus but earmarked to facilitate balance payment for plant and machinery, etc.-Funds inextricably linked to setting up of business of assessee-Interest from bank deposits not taxable as income from other sources.[S. 4, 35D]

S. 44: Insurance business-Profit on sale of investment by insurance company is not taxable in India. Provisions of section 14A do not apply to insurance companies, because in framing of assessments in case of insurance companies, it is purely section 44 read with rule 5 of First Schedule that would apply.[S.14A]

S.37(1): Business expenditure-Maintained two sets of accounts-loose papers-Order of Tribunal affirming the disallowance was affirmed. [S. 260A]

S.37(1): Business expenditure-IBNR and IBNER provisions created by the assessee, insurance company, in accordance with regulatory requirements of the Insurance Regulatory and Development Authority of India (IRDAI) are ascertained contingent liabilities and hence allowable deduction-Services rendered-Matter remanded-Order of Tribunal affirmed. [S. 145]

S.37(1): Business expenditure-Search-Loose papers-Tribunal restoring order of Assessing Officer disallowing expenditure on account of “debtors” found in loose papers-Order of Tribunal affirmed.[S. 132, 260A]

S.32AB: Investment deposit account-Computation of profit-Benefit Computation to be in accordance with the provisions of company law and not under the 1961 Act-Additional sugarcane price paid after year-end not deductible as expenditure while considering profits for purpose of grant of benefit under section 32AB-Order of Tribunal was set aside. [Companies Act, 1956, Sch. VI, Parts II, III.]

S. 11: Property held for charitable purposes-Micro finance services-Raising loans from commercial banks and charging processing fees on amount lent-Not entitled to exemption merely by obtaining registration under section 12AA and certificate under section 80G(5)(vi).[S.2(15), 11, 12, 80G(5)(vi), 260A]

S. 11: Property held for charitable purposes-Dharamshala to facilitate relief to poor people, orphans, widows, and old-aged persons-Charitable in nature. [S. 2(15), 13(8), 143(2), 260A]