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)]

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) ]