S. 37(1) : Business expenditure – Education Cess — Not a tax- Allowable as business expenditure .

S. 37(1) : Business expenditure – Set up of business – Interest , administrative and other expenses is held to be allowable as deduction – Interest income is to be assessed as business income and interest expenditure to be set off against it. [ S.28(i) , 56 , 57 ]

S. 36(1)(iii) :Interest on borrowed capital -Inventories held as current assets —Method of accounting – Accounting Standard 2 — Interest expenses allowable as deduction .[ S.145A ]

S. 36(1)(iii) :Interest on borrowed capital – Reasonableness of expenditure has to be decided by assessee and not department – Sufficient interest-free funds- No disallowance can be made .

S. 14A : Disallowance of expenditure – Exempt income -Not recording the satisfaction- No disallowance can be made [ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income – Own interest-free funds deployed in business much higher than average investment held by assessee during Year — Disallowance not sustainable [ R. 8D (2) (ii) ]

S. 12AA : Procedure for registration –Trust or institution- No specific findings on genuineness of activities carried on by Trust- Matter remanded to Commissioner for re adjudication [ S. 2(15), 11 ]

S. 11 : Property held for charitable purposes – Application of income – Accumulation of income -Retain or accumulate 15 Per Cent. of income without any time limit and is benevolent in nature however it cannot be regarded as an obligation envisaged in Law. [ S. 11(1)(a) , 11(1)(b ) ]

S. 10A : Free trade zone – Profits of the business- Export revenue subsidy — Miscellaneous income —Entitled for exemption [ S.10A(4) , 10B ]

S. 276C : Offences and prosecutions – Wilful attempt to evade tax -Delay in payment of tax which was paid subsequently – Criminal proceedings quashed. [ S.276(2) [