“Section 202(1)”

Reimbursement of expenses, where there is no profit element included, does not constitute taxable income. Recoveries made by an assessee that merely reduce its cost, without netting off any income from expenses, are not income.

In a Joint Development Agreement (JDA), capital gains arise for chargeability to tax when the complete control over the property is passed to the developer, with the date of such transfer of control being relevant for determining the assessment year. This includes considerations of possession under Section 53A of the Transfer of Property Act.

Adjustments to opening stock are not permissible when applying Section 145A, as this would retroactively disturb finalized profit figures of earlier assessment years. MODVAT credit balance in closing stock should be added to income, but corresponding adjustments to opening stock are not allowed.

The income of a society for mutual benefits of its members is exempt from tax, as demonstrated in this case concerning a cooperative bank.

Interest expenditure incurred on a loan taken for acquiring capital assets is treated as revenue expenditure if the capital assets have been put to use.