S. 32 : Depreciation-Plant and machinery installed by city development authority for water supply project would be eligible for 100 per cent depreciation-Road developed by city development authority for water supply project would be eligible for 10 per cent depreciation. [S. 80IA(4)(1), R. 5]

S. 14A : Disallowance of expenditure-Exempt income-Sufficient interest free funds to meet its investments yielding exempt dividend income- Disallowance is held to be not justified. [R. 8D]

S. 11 : Property held for charitable purposes – Registration granted to assessee cricket association, cancelled earlier, had been restored- Exemption cannot be denied- Amounts received by cricket association under TV subsidy from Board of Cricket Control of India (BCCI) being under a resolution which specifically stated that TV subsidies were towards corpus funds and not under any legal obligation were to be treated as corpus donations-Depreciation on capital asset is to be allowed as application of income. [S. 11(1)(d), 12AA, 32]

S. 250 : Appeal-Commissioner (Appeals)–Delay in filing appeals- Delay was condoned and the CIT(A) was directed to hear the appeal with in three months. [S. 10(23C)(iiiab), 11]

S. 147 : Reassessment–Matter remanded to the AO for redoing the assessment after getting the reply from the assessee–Original order passed was set aside.[S. 148, 153C]

S. 145A : Method of accounting–Valuation–Inclusion of excise duty in closing stock–Tribunal remanded the matter–No substantial question of law. [S. 145, 260A]

S.145 : Method of accounting-Business expenditure–Provision for liquidated damages-Held to be not allowable as negotiation was in progress. [S. 37(1)]

S. 2(22)(e) : Deemed dividend-Registered and beneficial share holder – Assessee is not share holder-Addition cannot be made as deemed dividend.

S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Application for compounding of offence for delay in depositing tax deducted at source was dismissed only on ground that nobody attended proceedings when said application was taken up for hearing- order was to be set aside and, matter was remanded back for disposal on merits. [S. 278B, 279]

S. 271AAA : Penalty-Search initiated on or after 1st June, 2007–Penalty cannot be levied on the ground that the assessee had not substantiated the manner in which the undisclosed income was derived is not sustainable where the assessee in the return of income had included that amount and no addition to the returned income was made by the Assessing Officer. [S. 132(4)]