S. 32 : Depreciation-Unabsorbed depreciation-Set-off-Assessee admitting income from business and profession-Entitled to set off brought forward loss against such income. [S. 32(2)]

S. 28(i) : Business loss-Genuineness of transaction-Amount paid by National housing bank (NHB) to assessee bank-but credited by assessee to the account of one Shri Harshad Mehta (HM)-subsequently such transaction got burnt in the fire of securities scam-Repayment of such amount to NHB-not allowed as business loss. [S. 44C]

S. 28(i) : Business loss-Claim To Loss of stocks stored in agents’ godowns on account of insect infestation-Assessee giving specific details of purchase of wheat, copies of bills, vouchers-AO ought To have issued summons to entities from whom wheat purchased-claim not to be rejected on surmises, suspicion and conjecture-Stock loss in trading of wheat allowable.

S. 17(2) : Perquisite-Fringe Benefits-Supply of electricity to employees at concessional rates-concession to be treated as Fringe Benefit. [S. 2(33B), 15, 192]

S. 10A : Free Trade Zone–Loss in-unit situated outside the Software Technology Park (STPI) not adjusted against units within the STPI-Income enhanced–Deduction is allowable on enganced income-Expenses excluded from export turnover– Consequential exclusion from total turnover.

S. 10(26AAB) : Income of an agricultural produce market committee-Agricultural produce to be given a wider meaning.

S. 10(26) : Exemption to member of a Scheduled Tribe-Allowability-Individual vis-a-vis partnership firm-Since partnership firm is not a member of a scheduled tribe-Such firm not entitled to exemption under S. 10(26)-but its partners are eligible for the same. [Art. 366, General Clauses Act, 1897, S. 13]

S. 9(1)(vi) : Income deemed to accrue or arise in India–Royalty/ Fees for technical services-Access to online database is not royalty/Fees for technical services. [S.9(1) (vii )]

S. 9(1)(i) : Income deemed to accrue or arise in India–Permanent establishment–Liaison office of assessee did not constitute PE-Income is not chargeable to tax in India. [Art. 5]

S. 5 : Scope of total income–Actual income reported cannot be substituted with notional figures. [S. 4, 145(3)]