S. 28(i) : Business loss-Real estate business-Earnest money forfeited-Allowable as business loss-Commission paid to agent for purchase of plots of land-Transaction not materialise due to failure to pay full amount of consideration-Allowable as business loss. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income-Not subjected to MAT adjustment-More non-interest bearing funds-No disallowance can be made-Only exempt income yielding investments have to be taken into consideration whilst computing administrative expenses. [S. 11JB, R. 8D(2)(iii)]

S. 14A : Disallowance of expenditure-Exempt income-Purpose for which the investment was made is not relevant for disallowance. [R. 8D]

S. 12AA : Procedure for registration-Trust or institution-Application of income outside India-Rejection of application is held to be not justified. [S. 11(1)(c), 12]

S. 11 : Property held for charitable purposes-Principle of consistency-Exemption was allowed. [S. 2(15), 12A]

S. 11 : Property held for charitable purposes-Depreciation-Carry forward of deficit-Depreciation allowed.[12A, 32, 70, 74]

S. 10(2A) : Share income of partner- Firm-Share of profits to partner of firm-Addition is held to be not justified.

S. 10(1) : Agricultural income-Agricultural land-Sold to non-agriculturist-Not capital asset-Not liable to be assessed as capital gains-Sold agricultural land and purchased another agricultural land and took possession-Entitle to deduction. [S. 2(14), 45, 54B]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Refund of amount-Cannot be taxed-DTAA-India-USA. [Art. 12]

S. 276C: Offences and prosecutions – Wilful attempt to evade tax – Bogus purchase – Estimate of 12.5 per cent of Bogus Purchase upheld by CIT(A) and ITAT – No penalty was levied -High Court held that prima facie ingredients of offenses are satisfied – Assessee has wilfully and intentionally evaded his tax liability- Writ petition to quash the prosecution was dismissed . [S. 148, 279(1), Art. 226 Code of Criminal Procedure, 1973, S. 482 ]