S. 40(a)(ia) : Amounts not deductible-Deduction at source– Recipients of the interest income had included the income in their return and paid taxes thereon-No disallowance can be made- Second proviso inserted by Finance Act 2012 is retrospective effect. [S. 201(1)]

S. 37(1) : Business expenditure-Must be for business purposes–Not necessary that income should have been earned.

S. 37(1) : Business expenditure–Capital or revenue–Copy right expenses–Only license to use copy right–Allowable as revenue expenditure.

S. 37(1) : Business expenditure—Expenditure on software and payment to service provider is allowable as revenue expenditure.

S. 32 : Depreciation—Concept of passive user cannot be extended for long period—No allowance of depreciation in particular year— unabsorbed depreciation cannot be carried forward. [S. 32(2)]

S. 28(1) : Business loss-Capital loss-Transaction relating to acquisition of capital asset- Forfeiture of part of earnest deposit– Held to be capital loss and not revenue expenditure. [S. 37(1)]

S. 25B : Income from house property-Arrears of rent-Assessable on receipt basis – Provision is not retrospective. [S. 23]

S. 22 : Income from house property-Deductions-Municipality tax- Cheque issued before end of previous year-Encashment subsequently -Relates back to date of issue–Entitle to deduction. [S. 24]

S. 22 : Income from house property -Income from other sources- Arrears rent – Assessable as income from house property. [S. 25B, 56]

S. 14A : Disallowance of expenditure-Exempt income–Failure to consider contention and factual error–Investment from own funds -Matter remanded to the AO. [S. 254(1), R. 8D]