S. 54 : Capital gains – Profit on sale of property used for residence – Return- There is no bar / restriction that an assessee cannot file a revised return of income after issuance of notice u/s 143(2). A revised return of income can be filed even in course of the assessment proceedings provided the time limit prescribed u/s 139(5) is available. The Departmental Authorities are not expected to deny assessee’s legitimate claim of deduction by raising technical objection- Exemption claimed in revised return was directed to be allowed . [ S.139(5) 143(2) ]

S. 253 : Appellate Tribunal – Territorial jurisdiction – Stay-Location of Assessing Officer, at point of time when Tribunal hears and determines case, is relevant for determining jurisdiction of Bench to hear stay/appeals- Registry was directed to place matter before President to take final call on issue, hence the Registry was directed to place matter before President for final decision on transfer of assesee’s case to Delhi Benches . [ S. 127, ITATR, 4 ]

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability –Amount not written back sundry creditors in his profit and loss account and had shown balance outstanding towards those creditors cannot be added as income .

S.40(a)(ia):Amounts not deductible – Deduction at source –Labour charges – Payee had shown the amount as income in his hand hence no disallowance could be made .[ S.194C, 201 (1)]

S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Schedule bank – Rural or Non Rural advances – Entitled for deduction subject to upper limit of deduction laid down in said section- Matter remanded .

S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Schedule bank – Provision for standard assets is purely contingent hence cannot be allowed as deduction.

S. 35 :Scientific research – Deduction on account of purchase of ‘assets’ for its in-house R&D facility is allowable as deduction. Objective behind exclusion clause in S. 43(4)(ii) is to be that expenditure on scientific research should be incurred on research actually carried out by assessee in-house and assessee should not spend money in acquiring rights in or arising out of scientific research carried on by some other person. [ S.35(1)(iv) , 43(4)(ii) ]

S. 14A : Disallowance of expenditure – Exempt income –Sufficient interest free own funds to cover investment in shares and mutual funds etc –No disallowance can be made [ R.8D(2)(ii) ]

S. 11 : Property held for charitable purposes – Advance of loan to another trust where the common trustees had no substantial interest and advance not being investment there is no violation hence exemption cannot be denied and registration cannot be refused .[ S.10(23C)(vi),13(1)(d) ]

S. 194H : Deduction at source – Commission or brokerage -Trade discount granted to principal distributor could not be held as commission and, hence not liable for deduction of tax at source .