S. 37(1) : Business expenditure-Setting up of business and starting commercial activities-Commencement of research and development and construction of factory-Business is set up- Entitled to deduction of operating expenses, financial expenses and depreciation-Appellate Tribunal-Power. [S. 28(i), 32, 254(1)]

S. 36(1)(vii) : Bad debt-Interest allowed–Entitle to claim write off of principal.[S. 36(2)]

S. 36(1)(iii) : Interest on borrowed capital–Production of milk-Loan for setting up joint venture company with Central Government Agency and State Government entity–Allowable as deduction.

S. 36(1)(iii) : Interest on borrowed capital–Commercial expediency-Inter-corporate deposits–Lower rate charged on inter-corporate deposits than that paid -No disallowances can be made. [S. 37(1)]

S. 28(i) : Business loss–Loss on sale of bonds–Held to be business loss.

S. 11 : Property held for charitable purposes–Amount spent on acquisition of capital assets is allowed as application of income for charitable purposes – Depreciation is allowable.[S. 11(2), 32]

S. 4 : Charge of income-tax–Subsidy from State Government– Capital receipt. [S. 2(24)]

S. 4 : Charge of income-tax–Subsidies–Receipts of interest and power subsidiaries-Capital receipts-Amendment is prospective- Receipts not being nature of income cannot be included for purpose of computing book profit. [S. 2(24), 115JB]

S. 2(31)(v) : Person-Association of persons-No partnership deed -No unity of control-Assessment as Association of persons is justified. [S. 132]

S. 2(28A) : Interest-Accrual basis-Interest on compensation awarded by Motor Accident Claims Tribunal is taxable on year wise accrual basis. [Motor Accident Claims Tribunal]