S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable -Payment of interest on unsecured loans at rates between 15 % an 18% can not be held to be excessive.

S.40(a)(ia):Amounts not deductible – Deduction at source – Payee in its return disclosing payment received, no disallowance can be made for failure to deduct tax at source – Second proviso to S.40(a) of the Act is to be read as applicable with retrospective effect.

S.37(1): Business expenditure- Lease hold premises – Repairs and maintenance – Order of CIT(A) lacked quasi -Judicial investigation and analysis fair to both the assessee as well as the department- Repair and maintenance expenses and business promotion expenses- Matter was remanded to CIT(A) for fresh adjudication .

S. 36(1)(iii) :Interest on borrowed capital – Own funds more than investment- Disallowance of interest cannot be made.

S.32: Depreciation — Additional depreciation — Lab Equipment and Electrical Items is essential for manufacturing process which is entitled to additional depreciation [ S.32(1)(iii) ]

S. 32 : Depreciation -Motor Car — Company purchasing car in name of its manager which is used for the purpose of its business is entitle to depreciation.

S.28(i):Business loss — Fluctuation in foreign exchange loss — Derivative Contracts —Actual contract for sale of Merchandise is not speculative transaction is deductible.[ S.43(5) ]

S.28(1): Business loss — Forward and derivative contracts — gains on account of foreign exchange difference — Marked to Market Loss-Matter remanded for actual verification of entries in the books of account . [ S.37(1) ]

S. 10A : Free trade zone – Communication charges and travelling and conveyance expenses is to be excludible both from export turnover and total turnover – Interest earned on fixed deposits is part of business income which is deductible.

S. 275 : Penalty – Bar of limitation – Takes or accepts any loan or deposit – Repayment of loan or deposit – Limitation period of six months to be reckoned from the end of month initiation of the penalty proceedings by JCIT and not from the date of assessment order – Penalty u/s2771D is independent under assessment .-JCIT is only authority competent to initiate proceedings and impose penalty – Not barred by limitation .[ S. 269SS, 269T,271D, 271E ]