Section 36(1)(iv) of the Income Tax Act

The income of a charitable trust, particularly income from property held under trust, for the purpose of claiming exemption under Section 11, must be computed in a normal commercial manner, without strict reference to the computation provisions for different heads of income like Section 14 or Section 24(a). This approach ensures that the income available for application or accumulation is assessed on commercial principles.

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.

A wet dock of a dockyard is considered 'plant' for the purpose of depreciation.

When a return is filed under section 148, the assessment and reassessment under section 147 must follow the procedural provisions subsequent to section 139 of the Income Tax Act.

The amplitude of a deduction permitted by a section cannot be cut down by imposing conditions that rewrite the section.

The Assessing Officer has the discretion to select an accounting method and the assessee cannot compel the department to adopt a particular method.

The provision of Section 43B of the Income Tax Act, 1961, is not applicable to interest payable on loans obtained from the Government of India. Consequently, disallowance under Section 43B for non-payment of such interest is not permissible.

Expenditure not allowable under Section 36(1)(iv) of the Income Tax Act may still be allowable under Section 37 of the Act, even if the Tribunal followed this decision.