S. 37(1) : Business expenditure-Penalty–Fine-Illegal mining- Compensation is not penalty -Allowable as deduction.

S. 37(1) : Business expenditure–Disproportionate increase in expenses-Disallowance of 10% of the business promotion expenses is held to be justified.

S. 36(1)(vii) : Bad debt- Unrealizable subscription dues from the cable operators written off by the assessee in the books of accounts is allowable as bad debts.

S. 36(1)(iii) : Interest on borrowed capital–No proportionate disallowance of interest can be made unless the department establishes that the borrowed funds were utlilised for advancing interest free funds to relatives.

S. 36(1)(iii) : Interest on borrowed capital–Provision for interest on funds provided by government–Held to be allowable, subject to verification of payments in the subsequent years.

S. 32 : Depreciation-Film and serial broadcasting rights -Intangible assets – Entitle to depreciation. [S. 37(1)]

S. 14A : Disallowance of expenditure – Exempt income – No disallowance in relation to shares and securities held as stock in trade and where owned funds are more than the value of shares and securities. [R. 8D]

S. 10B : Export oriented undertakings–Interest free funds- Artificially imputing non-existent interest costs and denying deduction to the assessee was held to be not justified. [S.10B(7), 80IA(10)]

S 10(13A) : Exemption—Special allowance—House property loss— Employees claiming interest on housing loan and also exemption on account of house rent allowance are governed by two independent provisions-Entitle exemption. [S. 22, 192]

S. 4 : Charge of income tax–Capital or revenue-Subsidy-Additional Admitted -Excise duty refund and interest subsidy received from Government for setting up of an industry in the backward area was to be treated as a capital receipt. [S.28(i), 254(1)]