S. 37(1) : Business expenditure–Commencement of business– Service sector–Preliminary steps, such as engaging in negotiation or employment of personnel, could be regarded as an activity of commencement of business–Expenditure is held to be allowable.

S. 36(1)(iii) : Interest on borrowed capital-Acquisition of capital asset-Business of land development for industrial, commercial and residential use-Proviso to section 36(1)(iii) override provision of section 145A–Disallowance of claim of interest is held to be justified. [S. 145A]

S. 35 : Scientific research-Expenditure on scientific research is held to be allowable as deduction-Order of Tribunal is affirmed. [S. 35(2AB)]

S. 28(i) : Business income–Leasing the hotel and charging one percentage of total revenue–Assessable as business income and not as income from house property.[S. 22, 23]

S. 12AA : Procedure for registration–Trust or institution-Running of college and educational institutions-Denial of registration is held of be not valid. [S. 10(23C)(vi)]

S. 10A : Free trade zone–Deduction is to be allowed before allowing set off of looses of earlier years–Expenses reduced from export turn over has to be reduced from total turn over.

S. 10A : Free trade zone-Loss of another unit cannot be set off against the profit of unit eligible for deduction.

S. 10(23C) : Educational institution-Child education-Annual receipts from fee, interest and addition as cash credits exceeded Rs one crore–Prior approval was taken by CCIT–Denial of exemption is held to be justified. [S. 10 (23C)(iiad), 68]

S. 28(i) : Business loss – Loss on revaluation of permanent category investments – Held to be allowable as business loss [ S.260A ]

S.28(1): Business loss – Lawyer- Foreign exchange loss-Cash system of accounting -No addition is warranted [ S.145 ]