S. 37(1) : Business expenditure–Financial services-Sub–brokerage– Disallowance of 10% sub brokerage is held to be justified.

S. 37(1) : Business expenditure–Provision for project expenses – TDS was also deduced – Held to be allowable. [S. 145]

S. 36(1)(iii) : Interest on borrowed capital–Failure to establish that the expenses related to Hotel business was her proprietorship business – Disallowance was confirmed.

S. 36(1)(iii) : Interest on borrowed capital–Investment in acquiring control of two companies–Disallowance of expenditure on imaginary income and expenditure of subsequent year is held to be not justified – Expenditure is held to be allowable. [S. 14A, 57]

S. 14A : Disallowance of expenditure-Exempt income-Unless and until there is receipt of exempted income for concerned assessment year, section 14A is not attracted.[R. 8D]

S. 14A : Disallowance of expenditure – Exempt income – Applicability of Rule 8D is not mandatory in every case where assessee earns tax free dividend income – Rule 8D cannot be invoked and applied unless Assessing Officer records his dissatisfaction regarding correctness of claim made by assessee in relation to expenditure incurred to earn exempt income. [S. 10(34), R.8D ]

S. 10B : Export oriented undertakings-Deemed exports-Export through third parties-Entitled to deduction.

S. 4 : Charge of income-tax – Sales tax waiver benefits are in nature of capital receipts.

S. 250 : Appeal-Commissioner (Appeals)–Ex parte order-Order passed without giving opportunity of being heard was in violation of principle of natural justice- Matter remanded. [S.254(1) ITAT R. 28]

S. 115JB : Book profit- Not following the Accounting standard –AO Must modify the book profit as per Accounting Standards as per provisions of Companies Act.