S. 45 : Capital gains–Business income-Profit on sale of investment is assessable as capital gains. [S. 10(38), 28(i)]

S. 45 : Capital loss-Loss on sale of shade tree–Capital loss allowed to be carried forward.

S. 40(a)(ia) : Amounts not deductible-Deduction at source- Rejection of Books of account-Estimation of profit @ 8% of turnover—No disallowance can be made u/s. 40 of the Act. [S. 145(3)]

S. 36(1)(iii) : Interest on borrowed capital-Loan to sister concern from non –interest bearing funds–No disallowance can be made.

S. 14A : Disallowance of expenditure-Exempt income–Satisfaction-AO cannot disallow the expenditure far in excess of what has been disallowed, without demonstrating how the working of the assessee is wrong. [R. 8D]

S. 12AA : Procedure for registration–Trust or institution-Cancellation of registration cannot be done retrospective effect- Education- Amounts spent on construction of buildings and acquisition of Television channel for educational purposes-Entitle to exemption-Depreciation is allowable–Proviso inserted w.e.f. 1-4 .2015 is not retrospective–High Court has the power to set aside the order of Settlement Commission which i.e. erroneous. [S. 11, 12AA(3), 245D(4), Art. 226.]

S. 11 : Property held for charitable purposes–Depreciation is allowable–Amount transferred to private university–Exemption cannot be denied–Expenditure on foreign travel for purpose of Trust- Held to be allowable. [S. 12AA, 13, 32]

S. 5 : Scope of total income-Accrual-Real income theory-Bad debt -Mercantile system of accounting-Bill raised for premature termination of contract-Contracting company not accepting Bill- Income did not accrue–Another bill of which a small part is received after four years–Claim as bad debt is to be accepted. [S. 36(1)(vii)]

S. 4 : Charge of income-tax–Capital or revenue-Grant in aide– Disbursement of salaries and flood relief-Protect the functioning of the assessee-Held to be capital receipt. [S. 28(i)]

S. 2(24) : Income–Collection of value added tax on behalf of the State Government–Excess over expenditure deposited in State Treasury–Not assessable as income. [S. 2(24(i), 12A]