S.14A : Disallowance of expenditure-Exempt income-Apportionment of expenses-Demat charges-Interest expenses-Disallowance under R. 8D(2)(iii) is to be restricted to 0.5 per cent of the average value of investment which yielded exempt income in terms of statutory formula-The suo motu disallowance, no basis has been given by the assessee for making such ad hoc disallowance-AO shall be guided by the statutory formula. [R.8D(2)(ii)]

S. 12AB : Procedure for fresh registration-Company registered under Section 8 of the Companies Act, 2013-Withdrawn application under wrong advice-CIT(E) is justified in rejecting request for restoration of application under section 12AB of the Act [S.12A, 12AB, Companies Act, 2013, S. 8]

S. 12AB : Procedure for fresh registration-Cancellation of registration-Search and seizure-Originally assessed at Chandigarh-Centralised at Gurgaon-Case-Cancellation of registration by virtue of Jurisdiction under section 127 is not valid-Order of cancellation passed by Principal CIT, Gurgaon, is without jurisdiction in the context of territorial powers apart from the fact that it is not in accordance with law-Order is quashed. [S.2(7A), 12AA,12AB(4), 127(2), 132(1)]

S. 12AA : Procedure for registration-Trust or institution-Cancellation of registration-Trust contains a covenant that enables the settlor to utilize the premises for herself or her family-Cancellation of registration is set aside. [S. 11(5), 12A, 12AA(3), 13 (3)]

S. 10(23D) : Mutual Fund-Exemption-Approved by Government and Reserve Bank of India-Eligible for exemption-Order of CIT(A) is affirmed. [UTI India Fund Unit Scheme, 1986, Unit Trust of India Act, 1963]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Supply of telecommunication hardware with software-Receipt is not taxable as royalty-Not liable to pay interest u/s. 234B-DTAA-India-USA. [S. 90, 195, 234B, Art. 7, 12]

S. 4 : Charge of income-tax-Subscription received by assessee from members towards holidays membership schemes—Entries in the books of account is not conclusive-Collective investment schemes(CIS)-Advances for sales-Deposits-The deposits received from the members cannot be treated as revenue receipt-Capital receipt.[S.40(a)(ia), 145, 194A, 195]

S. 4 : Charge of income-tax-Capital or revenue-Business income-Compensation-Other payments-Income chargeable to tax-Compensation for termination (nonrenewal) of professional contract-Profession-Retrenchment-Freelance journalist-Compensation being capital receipt is not taxable. [S. 4, 28(ii)(e), 32(1)(iv), 56(2)(xi), Industrial Relations Code, 2020, S. 2(ZA)]

S.271D: Penalty-Takes or accepts any loan or deposit-Book adjustment entries-No violation of section. 269SS-Penalty is deleted. [S. 269SS]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Reassessment-Lack of proper enquiry-Issues not subject-matter of reassessment-Issue which is not subject matter of reassessment, Commissioner cannot direct the Assessing Officer to carry out the enquiry as suggested by the Commissioner. [S. 37(1), 40A(2)(vi), 40A(2)(b), 147, 148]