S. 37(1) : Business expenditure-Motor car and telephone expenses–Failure to maintain log book-Ad-hoc disallowance of 10% of expenses is held to be justified.

S. 36(1)(va) : Any sum received from employees–Deposited EPF and ESI contribution late but before due date of filing return-Entitle to deduction- Binding precedent-When decision of jurisdictional High Court is available on issue -Non jurisdictional High Court cannot be followed. [S.139(1), Art.227].

S. 36(1)(va) : Any sum received from employees–Failure to deposit entire amount towards employees contribution on account of PF and ESI with concerned department on or before due date prescribed under relevant statutes- Not entitle to deduction. [S.2(24)(x), 139(1)]

S. 11 : Property held for charitable purposes-Accumulation of income –Merger with another society–Revenue failed to bring any evidence on record to establish accumulation of profit-Order of the AO is set aside.[S. 10(21)]

S. 11 : Property held for charitable purposes-Failure to file return- Return is filed in pursuance of notice u/s.148–Entitle to exemption as applicable to charitable Trust-Failure to produce evidence in support of its claim of electricity expenses-Such amount had to be excluded while considering application of income-S.40(a)(ia), 40A(3) and S. 43B falls in Chapter IV-D which are applicable for computing profits and gains of business or profession and Chapter IV-D is not applicable in respect of charitable trust or institution whose income is to be computed under S 11 and 12 falling under Chapter-III. S. 37(1), Explanation is not applicable to charitable trust. Capital expenditure is to be allowed as application of income. [S. 12, 37(1), 40(a)(ia), 40A(3), 43B, 139, 139(4A), 147, 148]

S. 10(23C) : Educational institution-Non-disposal of assessee’s application within prescribed time period of twelve months, would not result in deemed approval under said section. [S. 10(23C)(vi), 254)(1)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Subsidiary company neither concluded any contracts on behalf of assessee-US company-It had no such authority nor secured any orders for it in India, it could not be regarded as Agency PE of assessee in India- DTAA -India-USA. [Art. 5(6)]

S. 4 : Charge of income-tax-Development and operation of multipurpose port terminal- Share capital in form of foreign inward remittance-Unutilised funds–FDR interest-Capital receipt–Interest income is a capital receipt and is not taxable at all both under the normal provisions of the Act as well as under S. 115JB of the Act. [S. 56, 115JB]

S. 4 : Charge of income-tax–Mesne profit–Arbitral award-damages from tenant for unauthorized occupation of let out property, amount so received being in nature of ‘mesne profit’ was a capital receipt, not liable to tax. [S. 22]

S. 4 : Charge of income-tax–Capital or revenue-Income from sale of Carbon emission reduction certificates is capital receipt. [S.80IA, 115BBG]