S. 45 : Capital gains-Investment in shares-High turnover of shares-Assessable as capital gains and not as business income. [S. 28(i)]

S. 28(i) : Business loss-Foreign exchange derivative loss cannot be disallowed holding it to be a speculative loss-Remand to the Assessing Officer is held to be valid. [S. 43(5)]

S. 28(i) : Business loss-Investment in subsidiary-Wound up of subsidiary-Loss is allowable. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds more than investment-No disallowance can be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Failure to prove that no expenditure was incurred-Disallowance of expenditure is held to be justified. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction is mandatory-Disallowance cannot exceed exempt income. [R. 8D]

S. 11 : Property held for charitable purposes-Salary paid to secretary-50% of salary was allowed as reasonable-No substantial question of law. [S.260A]

S. 10AA : Special economic zones-Export turnover-Expenditure incurred in foreign exchange is to be excluded from ‘Export Turnover’ for purpose of computing deduction.

S. 10A : Free trade zone-Split of existing business-Site development of software at client premises-New unit-Entitle to exemption.

S. 268A : Appeal-Development agreement-Monetary limit-Less than one crore-Appeal dismissed. [S. 2(47)(v), 48]