S. 36(1)(iii) :Interest on borrowed capital -Investment in subsidiaries- Nexus was established -Interest was held to be allowable deduction.

S. 36(1)(iii) :Interest on borrowed capital -Having its own capital at end of financial year relevant assessment year for advancing money for not charging interest , interest payment cannot be disallowed .

S. 36(1)(iii) :Interest on borrowed capital – Advance to director for the purpose of business- Disallowance of interest cannot be made .

S. 36(1)(iii) :Interest on borrowed capital – Borrowings for expansion of business, interest was held to be allowable as deduction-Amendment to S.36,with effect From 1-4-2004 is prospective and not retrospective.[ S. 37(1) ]

S. 36(1)(iii):Interest on borrowed capital — Interest free advances out of surplus funds hence interest was held to be allowable .

S. 36(1)(iii) :Interest on borrowed capital – Advance to subsidiaries- Presumption is that the advance was from the interest free generated or available with the company- Disallowance of interest was held to be not valid .

S.36(1)(iii): Interest on borrowed capital -Firm- Exempt income -Capital assets received in form of shares in names of partners and not firm — Failure to establish shares forming part of capital account of firm —Disallowance was held to be justified [ S. 14A , 263 ]

S. 35E :Expenditure on prospecting – Minerals –Amortisation- 10% of expenses was held to be allowable .

S. 35D : Amortisation of preliminary expenses – No disallowances can be made as there was no material to show that the business income of shipping division was offered on basis of tonnage tax scheme [ S. 37(1) ]

S. 35 : Scientific research – Approval of competent authority is mandatory to claim weighted deduction [ S. 35(2AB)]