S. 37(1) : Business expenditure-Festival expenditure–Books of account not rejected-Disallowance of 25% of festival expenses cannot be disallow when books of accounts were duly audited and no discrepancy was found. [S. 145]

S. 36(1)(iii) : Interest on borrowed capital–Rental premium equivalent to 3 months monthly rent-lease rent–Excessive or un reasonable-Matter remanded to AO for reconsideration. [S. 40A(2), Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.]

S. 32 : Depreciation-Set-off of unabsorbed depreciation against its current year income from house property and income from other sources. [S. 22,32 (2), 56]

S. 28(i) : Business income-Charge of income-tax–Mutuality– Commercial concern–Principle of mutuality is not applicable-Income is chargeable as business income. [S. 4]

S. 28(i) : Business income-Letting out shopping mall/business centres by providing host of services/facilities/amenities– Income derived assessable as business income and not as income from house property. [S. 22]

S. 11 : Property held for charitable purposes-Educational institution-Income received from sale of property – Application for application of income was not made – Denial of exemption is held to be justified. [S. 11(2)]

S. 4 : Charge of income-tax–Diversion of income by overriding title-Obligation to spend on AMP arose after receipt of income–No obligation to spent definite amount–Application of income-Chargeable to tax. [S. 28(i)]

S. 4 : Charge of income-tax–Capital or revenue-Compensation for termination of lease-Loss of source of income–Capital receipt not to chargeable to tax. [S. 45]

S. 2(22)(e) : Deemed dividend-Trade advance-Commercial transaction-Not assessable as deemed dividend.

S. 183 : Declaration of income-Benamidar–Misrepresentation–No provision for granting an opportunity of hearing–Cancellation of declaration is held to be valid. [S. 193, PBPT Act. 1988, S. 24(4)]