S. 36(1)(iii) : Interest on borrowed capital–interest free advance given to associates for the assessees’s business–Held, no disallowance required.

S. 32 : Depreciation–Plant and machinery installed for generation of power is eligible for additional depreciation under clause (iia) as electricity is covered in the meaning of ‘article or thing’. [S. 32(1)(iia)]

S. 28(i) : Business income–Un realised foreign exchange gains-Matter remanded. [S. 145]

S. 22 : Income from house property–Rental income from letting out of stock-in-trade was consistently held to be taxable under the head income from house property–Held, consistency principle to be followed. [S. 28(i)].

S. 10AA : Special economic zones–Conditions in section 10AA(4) are to be satisfied on a unit wise basis and not on an entity basis- Once the claim was allowed in the first year, it could not be denied in the third year. [S. 10AA(4)]

S. 10A : Free trade zone-Expenditure incurred in foreign exchange on communication/internet charges are to be excluded from total turnover.

S. 5 : Scope of total income–Interest on NPAs not taxable on accrual basis in the hands of a non-banking institution. [S. 43D, 145, RBI Act, ]S. 45Q]

S. 2(31) : Person – Status of an entity incorporated abroad has to be determined even in India, according to the law of the country where the entity is incorporated. [S. 74, 80, 139(3)]

S. 2(22)(e) : Deemed dividend- Income cannot be taxed in the hands of the shareholders unless it is shown that the monies have been received by them.-Alleged admission- Matter remanded [ S.254 (1) ]

S. 2(14)(iii) : Capital asset – Agricultural land – land sold being situated within municipal limits of Thanesar City – AO rightly considered land as non-agricultural land — Contention that benefit of S 54F is to be given could not be accepted since it was not raised before any of the lower authorities. [S. 45, 54F]