S. 80P : Co-operative societies–Entitle deduction in respect of interest earned from co-operative societies.[S. 80P(2)(a)(i), 80P(2)(d)].

S. 80IB : Industrial undertakings-Production and sale of mosquito repellents-In absence of any other rational basis for allocating income for computation of amount eligible for deduction, ratio of excisable value of output of non-eligible unit vis-a-vis that of eligible units would constitute a good basis for bifurcation of income Matter remanded.

S. 80G : Donation–Matter remanded to CIT(E) for verification of genuineness of activities of trust.[S. 80G (5)]

S. 68 : cash credits–Bank statement is not books of account Sale of shares–Addition on the basis of bank statement treating the statement as books of account is held to be not valid–Natural justice–Statement of third parties cannot be relied upon without giving an opportunity of cross examination. [S. (2(12A), 44AA, 45, 69, 69A, 143(3)]

S. 45 : Capital gains-Business income-Merger investments in mutual funds–Liable to be assessed as capital gains and not as business income. [S. 28(i)]

S. 43(5) : Speculative transaction–Hedging contracts with bank– Loss on fluctuation in foreign currency–Interest was paid on fixed rate of 1.7 percent on loan amount–Not speculative in nature eligible as deduction–Interest is held to be allowable–Premium is held to be allowable on proportionate basis. [S. 36(1)(iii), 37(1), 40(a)(ia), 195]

S. 11 : Property held for charitable purposes-Pendency of appeal–Registration was granted–Corpus donation-Matter remanded to AO. [S. 12A, 12AA]

S. 17 : Perquisite – Salaries -Shares were not allotted by company to assessee in his capacity of being an employee -No benefit was received by assessee – Addition cannot be made as perquisites .[ S.15.17(2), 56(2) (vii) ]

S. 254 (1) : Appellate Tribunal–Power-Ex prate order-Tribunal has statutory power to recall its order if it is satisfied that respondent has failed to appear before it for sufficient cause at time of hearing and to restore appeal.[ITAT R. 25]

S. 254(1) : Appellate Tribunal–Duties-Delay in filing of appeal- Rejection of appeal is held to be not justified-Delay was condoned and directed the Tribunal to decide o merits. [S.10(23C(vi), 253 ]