S. 80IB : Industrial undertakings-Manufacture of article falling under Eleventh Schedule-Polyurethane foam-Manufacturing polyurethane foam and supplying it in different sizes and designs to assembly operator for use ultimately for car seats-Not entitled to deduction. [S. 80IB(2)(iii), Sch. XI, Entry 25.]

S. 45(4) : Capital gains-Distribution of capital asset-Transfer-Dissolution of firm-Revaluation of assets and credit to capital accounts of partners-Introduction of new partners-Withdrawal of credit from capital account-Otherwise-Firm is liable to pay capital gains tax. [S. 2(47)(ii), 47(ii), 50]

S. 43B : Deductions on actual payment-Mercantile system of accounting-Electricity duty-Agency to collect electricity duty-Provision is not applicable. [S. 43B(a), Electricity Act, 2003]

S. 36(1)(ii) : Bonus or commission-Bonus paid-Avoid payment of dividend distribution tax-Disallowance affirmed.

S. 32 : Depreciation-Based on evidence-No question of law. [S. 260A]

S. 28(i) : Business income-Capital gains-Purchase and sale of shares-Short period of holding and frequency of transactions-Assessable as business income. [S. 45]

S. 14A : Disallowance of expenditure-Exempt income-Interest on borrowed capital-Investments made from own funds-Disallowance is not justified. [R. 8D, 260A]

S. 10 (23C) : Educational institution-Placement services-Associated with education-Fee charged-Entitle to exemption [S. 10(23C)(vi), Art. 226]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Payments received from Indian customers for centralised services–Not taxable as fees for technical services or fees for included services-DTAA-India-USA. [Art. 12(4)(a)]

S. 2(15) : Charitable purpose-Exemption-Object of general public utility-Clarification-Law declared by court to be applied for assessment years in question, which were before court and were decided-Appeals decided against department, matter to be treated as final-For assessment years not before Court, authorities to apply law declared in judgment, having regard to facts of each year. [S. 10(20A), 10(23C), 10(46), 11, 11(4), 11(4A), 12, 12A, 12AA, 13(8), 143(3)]