S. 32 : Depreciation-Passive use of the assets-Unabsorbed depreciation-Business was stopped and assets were not in use for period of 24 years-Depreciation is neither allowable nor set off of carried forward of depreciation for previous year. [S. 32 (2), 72]

S. 32 : Depreciation–Amalgamation-Receipt of the Auditors report subsequently-Directed to allow the depreciation on the basis of Auditor’s report.

S. 23 : Income from house property-Annual value–Arrears of rent – Arrears of rent accruing in a prior years, not received in those years, could not be assessed in a subsequent year when same were received as income from house property-Arrears of rent attributable to preceding years cannot be brought to tax under the head income from other sources-Provision of section 25B inserted by Finance Act, 2000 with effect from 1-4-2001 would apply prospectively. [S. 22, 25B, 56]

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction-AO has not recorded the satisfaction how the disallowance made by the Assessee is not correct–Deletion of disallowance by the Tribunal is affirmed. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-In the absence of any exempt income, disallowance is not permissible. [R. 8D]

S. 12AA : Procedure for registration–Trust or institution- Charitable purpose-Cancellation of registration is held to be not valid- Orders made by the CIT and ITAT are quashed and the registration held by the GIDC is ordered to be revived. [S. 2(15), 11, 12A]

S. 10(23AAA) : Funds established for welfare of employees-No renewal was required once a Pension fund set up by assessee approved by concerned authority. [S.10(25), 12A]

S. 4 : Charge of income-tax–Capital or revenue–Business of accepting deposits from members and lending the same to non members-Waiver of deposit–Waiver of principal component of deposits and debentures–Capital receipts. [S. 28(i)]