S. 37(1) : Business expenditure–Setting up of business– Preliminary steps taken including appointment of key personnel to setting up main substantial commercial venture–Linkage between preliminary steps and ultimate activity maybe a relevant factor and assessee’s claim for deduction would be allowed.

S. 37(1) : Business expenditure-Scientific Research–No weighted deduction claimed of actual expenses–Deduction allowable as business expenditure. [S. 35(1)(ii)]

S. 37(1) : Business expenditure-Interest–Front end fees paid to bank for obtaining loan forms part of interest as defined – Expenditure towards front end fees paid is treated as revenue in nature- Matter remanded. [S. 2(28A), 35D(1)]

S. 37(1) : Business expenditure–advertisement expenses need not be debited to the capital work in progress when assessee follows completed contract method. [S. 145]

S. 37(1) : Business expenditure–amount paid to the allottees of flat for surrendering of their right therein is revenue in nature and is for the purpose of the business–such expenditure cannot be added to the cost of the stock but is an extraordinary item. [S. 145]

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)]