S. 36(1)(iii) :Interest on borrowed capital-Interest is not charged on inter-corporate deposits made with group companies-No evidence of commercial expediency-Disallowance is justified.

S. 32: Depreciation-Written down value-Non-receipt of insurance claim of amalgamating company-Mere claim-Claim actually allowed only to be considered-Depreciation is directed to allow on enhanced amount-State capital investment subsidy-Not required to be deducted from the WDV for computing the depreciation. [S. 43(6)(c, 43(1), Explanation 10.]

S. 28(iv) : Business income-Value of any benefit or perquisites-Converted in to money or not-Assets received free of cost from AEs located outside India-MAP-Price is already agreed under MAP-Therefore, the AO was not justified in making addition under S. 28(iv).

S. 28(iiib) : Business income-Cash assistance-Capital or revenue-Subsidy or grant or cash incentives or duty drawback or waiver or concession or reimbursement Incentive received from Government for exploring new export market-MEIS Scheme under Foreign Trade Policy, 2015-Though the said amounts are brought into P&L a/c and claimed as exempt in the return of income, the said treatment in the books of accounts by itself cannot be determinative of its taxability-Benefit under Foreign Trade Policy, 2015 being MEIS scrips does not fall within the meaning of cash assistance under s. 28(iiib)-Capital receipt, not chargeable to tax. [S. 2(24)(xviii), 4]

S.28(1): Business loss-Transfer of inter-corporate deposits and liabilities to a sister concern for a lesser consideration-Loss is not allowable as deduction. [S.37(1)]

S. 28(i): Business income-income from other sources-Prize money from unsold lottery tickets-Winnings from unsold lottery tickets are assessable as business income. [S.2(24)(ix), 56(2)(ib)]

S. 12AA : Procedure for registration-Trust or institution-Contribution for establishment of a Dam from PHD Rural Development Foundation which is a social arm of PHD Chamber of Commerce and Industry—Not for profit-Matter is remanded to CIT(E) to decide whether activity is genuine or not. [S.2(15), 12AB, 13(3),80G (5)]

S. 11 : Property held for charitable purposes-Rental income-Community hall-No profit motive-Object of general public utility-receipts from such activity do not exceed 20 per cent of the as total receipts, proviso to S. 2(15) is not applicable-Corpus donations-Direction to building fund-Exemption under section 11(1)(d) is applicable. [S. 2(15), 11(1)(d), 12, 12AA]

S. 11 : Property held for charitable purposes – Once exemption is denied and the registration is withdrawn the income of the trust should be assessed an AOP – Only surplus profit can be assessed – Application before CBDT for condonation of delay in filing Form No 10BB-The AO is directed to decide the issue of exemption after the order of the CBDT. [S. 12AA, 119, Form 10BB.]

S. 4 : Charge of income-tax-Interest on deposits of grants received by nodal agency of Government-Issue is remitted back to the AO to ascertain whether the interest income has been remitted back; if the entire interest income has been remitted back to the Central Government/State Government, then no addition is sustainable on account of the interest income earned on the deposits.[S. 5]