S. 28(i) : Business income-Undisclosed sources-Unaccounted stock-Declared during survey-Assessable as business income and not u/s 69A as unexplained money-Remuneration and interest paid to Partners from said excess stock disclosed as business income allowable as deduction. [S. 69A, 40(b)(iv), 133A]

S. 22 : Income from house property-Business income-Rental Income earned by assessee by renting out its warehouse building, who is not in business of letting out properties, cannot be assessed as income from business or profession, but has to be assessed as income from house property. [S. 22]

S. 12A : Registration-Trust or institution-CIT(E) cannot merely rely upon one selective aim and object to deny registration. [S. 11, 80G]

S. 12AA : Procedure for registration-Trust or institution-Rejection of assessee’s application for registration under section 12AA by the CIT (E) on the ground that it sought withdrawal of the application in view of revisionary petition filed under section 264, when in fact it had merely requested to hold proceeding for grant of registration in abeyance till disposal of revisionary proceedings, disposal of application was to be set aside and matter was to be restored back. [S. 264]

S. 12AA : Procedure for registration-Trust or institution-CIT(E) while granting registration has to satisfy himself about the objects of the trust and its activities, and cannot go beyond to verify the violations referred to under sections 11(1)(a) and 13(1)(c) of the Act. [S. 2(15), 11(1)(a), 13(1)(c)]

S. 12AA : Procedure for registration-Trust or institution-Refusal of Registration for non compliance of notices-Non compliance due to shifting of office-Matter remanded with direction to give an opportunity and decide after considering response of the assessee. [S. 12A]

S. 12AA : Procedure for registration-Trust or institution-Benefit of Registration granted in subsequent year-The benefit of registration will be conferred even to earlier years assessment proceedings which are pending as on date of such registration. [S. 11]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Double taxation relief-Fees for Technical Services-Engineering Services-Separate Contracts-No Make available cannot be invoked-Not taxable-Reimbursement-Not taxable-DTAA-India-USA. [S. 90, Art. 12]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Supervisory Permanent Establishment in India-Merely providing access to the premises of joint venture Company for the purpose of providing agreed services by the assessee would not amount to the place being at the disposal of the assessee-DTAA-India-Japan. [Art. 5(1), 5(4)]

S. 5 : Scope of total income-Accrual-Interest Income qua ICDs whose recovery is doubtful and legal proceedings have been initiated-Held, addition of Interest on ICDs cannot be sustained. [S. 4, 145]