S. 37(1) : Business expenditure-Capital or revenue-Licence fee paid to Department of Telecommunications is allowable as revenue expenditure-Loan for revenue purposes-Fluctuation loss-Allowable in year of increase in rate-Question cannot be raised even without taking in the grounds raised before the High Court. [S. 260A]

S. 37(1) : Business expenditure-Setting up and commencement of business-lease deed executed-Business set up-Pre-Operative expenses allowable.

S. 36(1)(iii) : Interest on borrowed capital-Presumption that investment was made from interest-free funds-Disallowance of interest is held to be not justified-Expansion and Extension of business-Proviso to Section 36(1)(iii) applies only to extension of business-Proviso does not have retrospective operation-Res judicata is not applicable to income tax proceedings but principle of consistency must be followed.

S. 32 : Depreciation-Windmill-Generated a small amount of electricity-Entitle to depreciation.

S. 14A : Disallowance of expenditure-Exempt income-Only to the extent of expenses incurred in relation to exempt income [R.8D]

S. 14A : Disallowance of expenditure-Exempt income-Disallowance not to exceed exempt income. [R. 8D]

S. 14A : Sufficient interest free funds available-investment are presumed to be out of interest free funds-only those investments to be considered which yield exempt income for the purpose of calculation. [R. 8D(2)(ii)]

S. 12A : Registration-Trust-Exemption cannot be denied merely because certificate could not be produced as the same was destroyed during folds of 1978-Matter remanded. [S. 11, 12A, 12AA and 143(3)]

S. 11 : Property held for charitable purposes-Income from business or business held in trust-Main object is for establishing, maintaining and running a hospital for philanthropic purposes and not for the purpose of profit-Entitle exemption. [S. 2(15)]

S. 10A : Free trade zone-Export turnover-Telecommunication expenses and foreign currency expenditure not to be excluded from export turnover.