S. 37(1) : Business expenditure – Capital or revenue-Royalty paid in the nature of spectrum charges to Government of India as a percentage of revenue on regular basis – Also, license fee paid for telecommunication services to Government of India based on revenue share and on regular basis – Held, both are revenue expenditure – S. 35ABB is not applicable.[S.35ABB]

S. 37(1): Business expenditure – Compounding fees paid to RBI for post-facto approval from FIPB – Held, amount compensatory in nature and therefore, allowable as deduction. [Expln.]

S. 37(1): Business expenditure –Capital or revenue- Expenses on renovation and refurbishing of a leased property – Held, expenses incurred to facilitate carrying out of catering / canteen services at the leased premises and formed integral part of profit earning process of assessee’s business – Held, revenue expenditure.

36(1)(iii) : Interest on borrowed capital – Interest in share capital of other companies – Held, for business purpose therefore, no disallowance u/s 36(1)(iii). Such investment as well as such interest cannot be considered for computing disallowance u/s. 14A. [S. 14A, R. 8D(2)(ii)]

S. 32 – Depreciation –UPS and Date drive part of computer system and eligible for higher rate of depreciation

S. 28(i) : Business loss – Mark to market loss in derivative transactions – derivatives held as stock-in-trade – valued on the principle of cost or market value whichever is lower – Held, allowable.

S. 13 : Denial of exemption-Trust or institution-Investment restrictions – Land and interest free loan given to a trust not registered u/s 12AA – Held, objects of the assessee and the recipient trust were same would not make the latter a registered trust u/s 12AA – Denial of exemption is justified . [S. 11, 12AA]

S. 10A : Free trade zone – Sale by the assessee to HO outside India would amount to Export eligible for deduction u/s 10A of the Act.

S. 4 :Charge of income-tax – Discrepancy in AIR data and Form 26AS – Assessee disputed certain transaction reflected in AIR data but claimed credit of TDS – Held, not permissible – Held, AO to verify whether credit of TDS wrongly taken and whether the income does not belong to the assessee. [ Form 26AS]

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Third party statement not provided to the assessee, during revisional proceedings, basis which fresh enquired directed – Order is Invalid and remanded to the CIT for providing material and hearing objections.