S. 68 : Cash credits–Loan -Received by account payee cheque-Repaid by account payee cheque–Established genuineness of the transaction and creditworthiness of the lenders-Additions cannot be made.

S. 54F : Capital gains-Investment in a residential house-two residential units purchased at two different localities. Exemption was restricted to only investment in one residential house property. [S. 45]

S. 54F : Capital gains-Investment in a residential house-Capital gains arising from sale of basement of a building which was used for habitable purposes was within purview of a residential flat-Entitle to exemption.[S. 45, 54]

S. 37(1) : Business expenditure-Expenditure incurred for providing training through Apparel Training and Development center, being in the nature of Corporate Social Responsibility (‘CSR’) expenses is not allowable as a deduction.

S. 37(1) : Business expenditure-Penalty–Fine-Illegal mining- Compensation is not penalty -Allowable as deduction.

S. 37(1) : Business expenditure–Disproportionate increase in expenses-Disallowance of 10% of the business promotion expenses is held to be justified.

S. 36(1)(vii) : Bad debt- Unrealizable subscription dues from the cable operators written off by the assessee in the books of accounts is allowable as bad debts.

S. 36(1)(iii) : Interest on borrowed capital–No proportionate disallowance of interest can be made unless the department establishes that the borrowed funds were utlilised for advancing interest free funds to relatives.

S. 36(1)(iii) : Interest on borrowed capital–Provision for interest on funds provided by government–Held to be allowable, subject to verification of payments in the subsequent years.

S. 32 : Depreciation-Film and serial broadcasting rights -Intangible assets – Entitle to depreciation. [S. 37(1)]