S. 36(1)(iii) :Interest on borrowed capital -Inventories held as current assets —Method of accounting – Accounting Standard 2 — Interest expenses allowable as deduction .[ S.145A ]

S. 36(1)(iii) :Interest on borrowed capital – Reasonableness of expenditure has to be decided by assessee and not department – Sufficient interest-free funds- No disallowance can be made .

S. 14A : Disallowance of expenditure – Exempt income -Not recording the satisfaction- No disallowance can be made [ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income – Own interest-free funds deployed in business much higher than average investment held by assessee during Year — Disallowance not sustainable [ R. 8D (2) (ii) ]

S. 12AA : Procedure for registration –Trust or institution- No specific findings on genuineness of activities carried on by Trust- Matter remanded to Commissioner for re adjudication [ S. 2(15), 11 ]

S. 11 : Property held for charitable purposes – Application of income – Accumulation of income -Retain or accumulate 15 Per Cent. of income without any time limit and is benevolent in nature however it cannot be regarded as an obligation envisaged in Law. [ S. 11(1)(a) , 11(1)(b ) ]

S. 10A : Free trade zone – Profits of the business- Export revenue subsidy — Miscellaneous income —Entitled for exemption [ S.10A(4) , 10B ]

S. 276C : Offences and prosecutions – Wilful attempt to evade tax -Delay in payment of tax which was paid subsequently – Criminal proceedings quashed. [ S.276(2) [

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Appellate Tribunal -Power – Lack of enquiry – Tribunal agreeing with Commissioner but setting his order on merits – Tribunal has no power to consider merits of assessment order when it was not subject matter of appeal [S. 12AA,80IB(10) ,254(1) ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Capital gains – Purchase of three units in same building- Assessing Officer allowing the exemption taking one of plausible views – Order is not erroneous . [ S.45 , 54 ,54F, 260A ]