S. 35 : Expenditure on scientific research-Accommodation entries-Survey-Office bearers of done society admitted that in the course of survey and also before Settlement Commission that they are providing accommodation entries by way of bogus donations in an organised manner-Not entitle to deduction-Notice issued under section 143(2) is valid-Reassessment is valid. [S. 35(1)(ii), 133A,143(2), 147, 148]

S. 24 : Income from house property-Deductions-Commercial property-Property in respect of which assessee claimed interest under section 24(b) was only a commercial property-Restriction on deduction as provided in 2nd proviso to section 24(b) would not be applicable. [S. 22, 24(b), 71B, 143(1), 154]

S. 24 : Income from house property-Deductions-Interest on loan to repay the original loan-Entitle to deduction-Rental income is offered as to tax as income from house property-Interest paid on loan borrowed for acquisition of property is allowable as deduction. [S. 22, 24(b)]

S. 10(23C) : Educational institution-Retrospective withdrawal of approval-Approval can be withdrawn only from the date of issuance of the show cause notice-Chairperson-Occupying the house property in lieu of her services-Provision for vehicles for members of the Society-Withdrawal of exemption is not justified. [S. 10(23C)(vi)]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-No evidence was available to ascertain the precious nature of actual services rendered-Matter remanded to the Assessing Officer-DTAA-India-USA. [S. 90, art. 12(4)]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-No right in the domain name-Income received from domain name registration is not royalty-Web hosting-Does not constitute royalty-Conducting conference for two days cannot be considered as fixed place of business and excluded from the definition of Permanent Establishment- DTAA-India-UAE. [S. 90, art. 5(3), 7, 12]

S. 4 : Charge of income-tax-Joint venture of Central Government and State Government-Rail corporation-Metro rail project-Separate legal entity-Income derived from corporation from business activities could not be said to be income of Karnataka State Government under article 289-Capital or revenue receipts-Sales tax referred-Matter remanded to the Assessing Officer-Interest on fixed deposits-Interest earned from fixed deposits of surplus funds after commencement is taxable though it was received for expansion of the project. [Companies Act, 1956, art. 12, 289]

S. 4 : Charge of income-tax-Capital or revenue-Sales tax subsidy-Backward area-Capital receipts.

S. 271G : Penalty-Documents-International transaction-Transfer pricing-Neither Assessing Officer nor Commissioner (Appeals) asked to furnish any specific information or documents-Penalty is deleted. [S. 92B,92D(3), 273B]

S. 271(1)(c) : Penalty-Concealment-Pendency of quantum appeal before CIT(A)-Assessing Officer at liberty to proceed in accordance with law after decision of pending quantum appeal.