S. 14A: Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made. [R. 8D (2) (ii) ]

S.11: Exemptions – Trust was not engaged in running the restaurant, bar etc. – Exemption is held to be allowable.

S.2 (14)(a): Capital asset –Advance given to subsidiary – Loss – Held to be allowable as short term capital loss [S. 2(42A) ,2(47)]

S. 271F : Penalty-Return of income-Failure to furnish – Refund return-Penalty is not leviable. [S.139(4), 244A]

S. 271D : Penalty–Takes or accepts any loan or deposit–Gift transactions between husband and wife-Levy of penalty is held to be not valid. [S. 269SS, 269T, 271E, 273B]

S. 271D : Penalty–Takes or accepts any loan or deposit–Money returned to father–Receipt of money from family members for medical emergency–Receipt of money from member of association for building school-Neither loan or advances–Levy of penalty is held to be not justified. [S. 269SS, 273B]

S. 271B : Penalty-Failure to get accounts audited-Not maintaining books of account-Penalty for not getting books audited could not be levied –Penalty for failure to maintain books of account is restricted to Rs. 25000. [S. 44AB, 271A]

S. 271B : Penalty-Failure to get accounts audited–Civil contractor– Failure to keep and maintain books of account-No prescribed format for maintenance of books of account-Levy of penalty is not justified either u/s 271A or u/s 271B of the Act. [S. 44AB, 271A]

S. 271AAB : Penalty-Search initiated on or after Ist day of July 2012-In statement admits undisclosed income and specifies manner in which such income derived-No undisclosed income-Penalty not leviable. [S. 132(4)]

S. 271AAB : Penalty-Search initiated on or after Ist day of July 2012-Concealment–Search and seizure–Undisclosed income-Disallowances cannot automatically lead to penalty–levy of 10% penalty is held to be not valid. [S. 132, 271(1)(c)]