S. 14A : Disallowance of expenditure-Exempt income–Disallowance cannot be made if there is no tax free income. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Only investment from which assesse has earned exempt income to be considered for disallowance. [R. 8D]

S. 14A : Disallowance of expenditure–Exempt Income-Assessee used its own interest free funds for making investment in shares and securities yielding exempt income-No disallowance could be made-Strategic investments made by assessee with its group/associated companies–to be considered for disallowance under section 14A-Disallowance under section 14A cannot exceed exempt income. [R. 8D]

S. 12AA : Registration-Trust or institution-CIT(A) cannot question registration granted by CIT(E). [S. 251]

S. 12AA : Registration – Trust or institution – Power of the CIT is to register or refuse to register the Trust but cannot qualify the Trust as ‘general public utility trust’- Tribunal directed the trust to be registered under section 12AA of the Act without any qualification. [S. 2(15), 11, 12, 13]

S. 10(1) : Agricultural Income–Assessee was able to prima facie establish that possession of agricultural land was acquired during the year- Entitle to exemption.

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Investigation services do not satisfy the ‘make available’ condition under Article 12(5) of the India Netherlands Tax Treaty, payment for such services could not be taxed as Fees for Technical Services in India- DTAA-India–Netherlands. [Art. 7, 12(5)]

S. 4 : Charge of income-tax -Incentives by way of excise duty refund and sales tax – encourage setting up of new industrial unit in area which was devastated by earthquake – Capital receipts not exigible to tax.

S. 271C : Penalty-Failure to deduct at source–Pendency of appeal before Appellate Tribunal-Revenue authorities should be restrained from passing any order imposing penalty. [S. 201, 206AA]

S. 271(1)(c) : Penalty–Concealment–Excess stock–Wrong entries in books of account- Deletion of penalty is held to be justified. [S. 145]