S. 36(1)(iii) : Interest on borrowed capital–Investment in acquiring control of two companies–Disallowance of expenditure on imaginary income and expenditure of subsequent year is held to be not justified – Expenditure is held to be allowable. [S. 14A, 57]

S. 14A : Disallowance of expenditure-Exempt income-Unless and until there is receipt of exempted income for concerned assessment year, section 14A is not attracted.[R. 8D]

S. 14A : Disallowance of expenditure – Exempt income – Applicability of Rule 8D is not mandatory in every case where assessee earns tax free dividend income – Rule 8D cannot be invoked and applied unless Assessing Officer records his dissatisfaction regarding correctness of claim made by assessee in relation to expenditure incurred to earn exempt income. [S. 10(34), R.8D ]

S. 10B : Export oriented undertakings-Deemed exports-Export through third parties-Entitled to deduction.

S. 4 : Charge of income-tax – Sales tax waiver benefits are in nature of capital receipts.

S. 250 : Appeal-Commissioner (Appeals)–Ex parte order-Order passed without giving opportunity of being heard was in violation of principle of natural justice- Matter remanded. [S.254(1) ITAT R. 28]

S. 115JB : Book profit- Not following the Accounting standard –AO Must modify the book profit as per Accounting Standards as per provisions of Companies Act.

S. 115A : Foreign companies–Tax–Royalty–In terms of technology license agreement entered into by assessee an Italy based company with its Indian AE effective from 1-04-2008, being covered by sub-clause (AA) of section 115A(1)(b), rate of tax on royalty recieved by assessee will be 10.50 per cent-DTAA- India Italy. [S.90(2), 195A]

S. 72A : Carry forward and set off of accumulated loss– Amalgamation-Not specified at to how those conditions were not met-Allowed to be set off.

S. 56 : Income from other sources-Joint venture company of Central and State Government-Metro Rail project-Fixed deposit with Bank – Not assessable as income from other sources [ S.4 ]