S. 37(1) : Business expenditure -Corporate entity – even if no business was carried out during the year, expenditure incurred by it has to be allowed.

S. 36(1)(iii) : Interest on borrowed capital – AO cannot step into the shoes of the businessmen – Interest is allowable on borrowed funds used for the purpose of business.

S. 32 : Depreciation – Injection moulding machine falls under the category of ‘Moulds’ and therefore shall qualify for higher rate of depreciation.

S. 32 : Depreciation – Depreciation is allowable non-compete territory rights – Department’s action of not filing an appeal against the CIT(A) favourable order in earlier year gives finality to the dispute.

S. 14A : Disallowance of expenditure – Exempt income – No automatic disallowance can be made[ R.8D].

S. 14A : Disallowance of expenditure – Exempt income -Disallowance has to be made where the assessee cannot furnish any evidence to prove that the investments were made in earlier years.[ R. 8D]

S. 10AA: Special economic zones -Assessee manufacturing different items in different units – No dispute about unit wise profitability declared by assesse – Remand report accepting cost of goods were reconciled – Addition made by AO to be deleted.

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Consideration paid for copyrighted article is not royalty and hence cannot be brought to tax either under Act or under DTAA

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Royalty income of assessee earned from OEMs situated outside India for the patents licensed to OEMs for manufacture of CDMA Network outside India was not chargeable to tax u/s 9(1)(vi)(c) .

S. 4: Charge of income-tax –Capital or revenue -Entertainment subsidy received under Uttar Pradesh Government scheme for promotion of construction of multiplexes is a capital receipt.[S.2(24)]