S. 50 : Capital gains-Depreciable assets-Block of assets-Depreciation allowed for 21 years-Not used for business for two years-Asset shown as investment in balance sheet-Gains assessable as short term capital gains. [S. 2(11), 2(29A), 2(29B) 45, 50A]

S. 43B : Deductions on actual payment-Interest payable to Financial Institutions-Rehabilitation plan and accepting debentures in discharge of outstanding interest-Explanation 3C, cannot be invoked-Interest is allowable as deduction-Interpretation of taxing statutes-Retrospective provision for the removal of doubts Cannot be presumed to be retrospective if it alters or changes law as it stood-Ambiguity in language to be resolved in favour of assessee. [S.43D]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payment genuine-Necessitated by circumstances-No disallowance can be made-Block assessment-Addition deleted on facts-No question of law. [S. 260A]

S. 37(1) : Business expenditure-Capital or revenue-Commuted and discounted lease rent-Allowable as revenue expenditure.

S. 35D : Amortisation of preliminary expenses-Demerger-Spin Off-Entitled to amortisation of expenses on demerger.

S. 32 : Depreciation-Building-Road-Entitle to depreciation at 10%-Depreciation on property held on lease-Depends on terms of lease-Matter remanded. [S. 32(1)(ii)]

S. 32 : Depreciation-Carry forward and set off-Unabsorbed depreciation on 1-4-2002 can be carried forward and set off without taking into account number of years of such carry forward. [S. 32 (2)]

S. 14A : Disallowance of expenditure-Exempt income-No dividend income earned-Disallowance cannot be made [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-No exempt income-Disallowance cannot be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Enhancement of disallowance is held to be not valid. [R. 8D]