S. 68: Cash credits – Opening stock accepted in scrutiny – Sales made from opening stock cannot be treated as bogus. [S. 56, 133A]

S. 57 : Income from other sources – Deductions –AO is not justified in disallowing claim for deduction u/s 57(iii) for interest paid when Assessee given names of lenders, loans were availed through banking channels and interest paid was allowed as deduction from year to year – Matter remanded to AO.[ S.57(iii) ]

S.56 : Income from other sources – Property received without consideration or for consideration less than its fair market value — Issue of bonus shares by capitalization of reserves does not result in inflow of any funds or property and is not assessable under section 56(2)(vii)(c)[ S.56 (2)(vii)(c)]

S. 40(a)(ia) : Amounts not deductible – Deduction at source – Handling charges paid to persons for in turn paying multiple labourers – TDS provisions not applicable – matter remanded back to CIT(A) for re-examining evidence which he refused to accept .

S. 32 : Depreciation – Asset put to use for less than 180 days – additional depreciation of 10% allowed in the year and balance 10% would be allowed in the subsequent year [S. 32(1)(iia)]

S. 32: Depreciation – Granted in ealier years and latter years – Order set aside for fresh consideration

S. 12AA : Procedure for registration –Trust or institution-Amendment in section 12AA applicable with effect from AY 2011-12 – retrospective cancellation of registration of trust with effect from AY 2010-11 is without jurisdiction. [S. 2(15)]

S. 12AA : Procedure for registration – Trust or institution – Assessee deemed to have abandoned or waived off their claim made in first application on filing second fresh application – Commissioner justified in granting registration taking into consideration second application and not retrospective registration basis first application .[ From No.10A ]

S. 11 : Property held for charitable purposes – Statutory body- Functions of assessee were fully controlled by instructions issued by Government – Assessee was engaged in charitable activity through advancement of an object of general public utility. [ S. 2(15) , Karnataka Industrial Area Development Act, 1987 ]

S. 11 : Property held for charitable purposes- Since lower authorities had not rendered any finding that activity carried out by assessee-trust was a commercial activity, benefit of exemption could not have been denied to assessee Matter remanded to AO to take fresh decision [ S.2(15)]