S. 36(1)(viii) : Eligible business-Reserve-Commercial loan-Borrower failed to construct on plot of land for residential purpose within three years has to be considered eligible business-Only the income which has direct and immediate nexus with grant of loans for construction of house only included for computation of deduction.

S. 36(1)(vii) : Bad debt-Reversal of provision-Matter remanded to the Assessing Officer. [S. 36(2)]

S. 36(1)(iii) : Interest on borrowed capital-Setting up of business-Real estate business-Entered in to development agreement of township-Claim of deduction is allowable. [S. 28(i)]

S. 36(1)(iii) : Interest on borrowed capital-Advance to sister concern-Failure to prove commercial expediency-Disallowance is held to be justified.

S. 35D : Amortisation of preliminary expenses-Public limited company-Issue of shares to Qualified Institution Buyers (QIB) would be regarded as issue of shares to public and, thus, expenses incurred on said issue would be eligible for deduction.

S. 35 : Scientific research-Non issue of approval for certain period-Denial of weighted deduction is not justified. [S. 35(2AB]

S. 32 : Depreciation-Business assets-Business of real estate-Not carried out any business activity during the relevant year-Depreciation is allowable.

S. 32 : Depreciation-Capital spares-Change in accounting policy-Depreciation is allowable at 15%.

S. 32 : Depreciation-Additional depreciation-Software development-Matter remanded. [S. 32(iia)]

S. 28(i) : Business loss-Sale of cashew to sister concerns-Conformity with normal commercial practice-Allowable as business loss. [S. 145]