S. 36(1)(iii) :Interest on borrowed capital – Intercorporate deposit to subsidiary – Strategic purposes and not for earning dividend – Interest is allowable as deduction – Common interest expenditure to be apportioned on basis of cost of financing and not on basis of turn over- Business income – Shipping business – Tonnage income not form part of normal business Income . [ S.37(1), 115VE ]

S.36(1)(iii: Interest on borrowed capital — Till asset for which loan borrowed is put to use, interest not allowable [ S.37(1) ]

S. 35DD : Amortisation of expenditure – Amalgamation – Demerger –
Expenses allowable in hands of parent company and not resultant company [ S.37(1) ]

S.32: Depreciation — Additional depreciation —Manufacturing – Coffee making machine, vending machine and express Kiosks used for converting raw coffee beans into liquid coffee fit for human consumption —Entitled to additional depreciation.[ S.32(1)(iia)]

S. 32 : Depreciation -Modem-Eligible for higher rate of depreciation at 60 Per Cent.

S.28(i):Business loss- Loss on account of fluctuation in rate of foreign exchange -Allowable as business loss [ S.37(1), 145 ]

S.28(i) :Business income- Intercorporate deposit-Interest on margin money-Interest earned assessable as business income and not as income from other sources.[S.56 ]

S. 14A : Disallowance of expenditure – Exempt income – Sufficient interest free fund – No disallowance can be made – Administrative expenses – No bifurcation of expenses – Disallowance at 0.5 Per Cent. is held to be a reasonable estimation.[ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income -No exempt income in relevant previous year — No disallowance can be made .[ R 8D ]

S. 14A : Disallowance of expenditure – Exempt income – No exempt income received during year — Disallowance cannot be made [ R.8D ]