S. 14A : Disallowance of expenditure – Exempt income – No disallowance in relation to shares and securities held as stock in trade and where owned funds are more than the value of shares and securities. [R. 8D]

S. 10B : Export oriented undertakings–Interest free funds- Artificially imputing non-existent interest costs and denying deduction to the assessee was held to be not justified. [S.10B(7), 80IA(10)]

S 10(13A) : Exemption—Special allowance—House property loss— Employees claiming interest on housing loan and also exemption on account of house rent allowance are governed by two independent provisions-Entitle exemption. [S. 22, 192]

S. 4 : Charge of income tax–Capital or revenue-Subsidy-Additional Admitted -Excise duty refund and interest subsidy received from Government for setting up of an industry in the backward area was to be treated as a capital receipt. [S.28(i), 254(1)]

S. 12AA : Procedure for registration –Trust or institution- Registration cannot be refused on the ground that all initial trustees had taken citizenship of foreign country – Order of CIT(E) rejection of registration and application u/s 80G is set aside .[S.80G ,FEMA , 1999, S.6(5), Indian Trust Act 1882 , S 10,.60, 73 ]

S. 271AA : Penalty – Failure to keep and maintain books of accounts –Documents – International transaction – Transfer pricing – failure to maintain books of account as per rule 10D and failure to furnish documents u/s 92D(1) –No reasonable cause – Liable to penalty [S. 92D, 271G, 273B, Rule 10D]

S. 153A : Assessment – Search- Share Capital and Share premium – Statement recorded- No incriminating material was found in the course of search – Order is bad in law . [S. 68,132,132(4) ]

S. 36(1)(iii):Interest on borrowed capital – Loan taken for purchase of shares – Shares held as stock in trade – Business expenditure – Accepted in earlier year – Allowable as deduction- Department cannot take a different stand . [S. 37(1)]

S. 28(i): Business income -Agricultural income- Contract of growing and transporting grass – Growing and extracting grass – Agricultural Income – Transporting and relaying grass – Service – Business income. [ S. 2(1A),10(1)]

S. 11: Property held for charitable purposes-Dividend income – Income can be taxed if the investment is in violation of the provision -Exemption cannot be denied to the Trust in respect of other income .[ S. 11(5), 12AA,13(1)(d)]