S. 37(1) : Business expenditure-Business promotion expenses-Not practically possible to furnish complete list of gifts to various customers-Quantum of expenditure vis-a-vis turnover would have to be justified-Restriction of 40 Per Cent. of initial total disallowance is held to be reasonable.

S. 37(1) : Business expenditure-Employees stock option plan Expenses-Allowable as revenue expenditure.

S. 36(1)(iii) : Interest on borrowed capital-Paying interest thereon at 12.2 Per Cent. and advancing loans charging interest at 7.25 Per Cent. and 10 Per Cent.-Disallowance is held to be not justified.

S. 36(1)(iii) : Interest on borrowed capital-Intercorporate deposits agreement with assessee and its subsidiaries-Commercial expediency-Interest deductible.

S. 35DDA : Amortisation of expenditure-Voluntary retirement scheme – Expenses incurred prior to insertion of section – Governed by earlier provisions. [S. 37 (1)]

S. 32 : Depreciation-Computer software-60% depreciation is allowable.

S. 14A : Disallowance of expenditure-Exempt income-No exempt income during the year-No disallowance can be made.[R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Only exempt income yielding investments to be considered to compute disallowance. [S. 115JB, R. 8D]

S. 11 : Property held for charitable purposes-Trust entitled carry forward deficit of current year and to set it off against income of subsequent years. [S. 11((1)(a), 12A]

S. 11 : Property held for charitable purpose-A Statutory body established for acquisition of land for Industrial Infrastructure- Operating on non profit basis-Entitle to exemption. [S. 2(15), 32]