S. 40(a)(ia) : Amounts not deductible-Deduction at source– Interest, commission-When exemption u/s.11 is denied the assessee is liable to deduct tax at source – Addition made by the AO is held to be justified. [S. 10(23AA), 11, 12A, 13]

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts- Schedule bank-Entitle to set off though dis not have any positive profit to set off.

S. 23 : Income from house property-Annual value-Property which is not legally occupiable and not occupied-Could not be made liable to tax on notional rental income for that period. [S. 22]

S. 10(23AA) : Funds established for welfare of employees – Failed to prove income on behalf of regimental fund or non-public fund established by the armed forces of the Union- Denial of exemption is held to be justified. – Marginal rate to be applied to total income . [S. 11, 13 ,148, 164 ]

S. 10(10AA) : Leave salary–Government employee-Leave salary- Employee of the Central Government or State Government- Retired employees of PSUs and nationalised bank cannot be treated as Government employees-Not entitled to get full tax exemption on leave encashment after retirement/superannuation. [Art. 12, 226]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Fixed place of business-liable to be assessed in India- DTAA-India-UK. [Art. 5(1), 5(2), 5(4)]

S. 276CC : Offences and prosecutions-Failure to furnish return of income–Quantum appeal is pending–Petition to quash the proceedings before the magistrate court is dismissed. [S. 139(1), Art. 226, 227]

S. 260A : Appeal-High Court-Substantial question of law on jurisdictional issue is framed at the time of final hearing of appeal and the order of Assessing Officer is quashed for not issuing the mandatory notice u/s.143(2) of the Act. [S. 158BB, 158C, Code of Civil Procedure, 1908 (5 of 1908)]

S. 245 : Refunds-Set off of refunds against tax remaining payable-AO cannot deviate the mandate of the S.245–Adjustment of refund is held to be bad in law-Department is directed refund the refund.

S. 197 : Deduction at source-Certificate for lower rate–Alternative remedy – Revision would be futile/academic in nature-Writ is maintainable. [S. 201(1), 201(IA), 264, Art.226]