S. 47(v) : Capital gains – Transaction not regarded as transfer – Subsidiary to holding company – Not necessarily whole of the shares of the subsidiary company is held by holding company – A construction which results in rendering a provision redundant must be avoided – Entitle to exemption . [ S.47 (iv)]

S. 37(1) : Business expenditure – Discount to custoners – Higher percentage than discount granted earlier year – Disallowance is arbitrary – Income- tax Authorities must put themselves in the shoes of the assessee and see how a prudent businessman would act -Books of account not rejected – Allowable as business expenditure .

S. 37(1) : Business expenditure – Deferred revenue expenditure – Advertisement publicity and sales promotion – Allowable in the year it was incurred .

S. 37(1) : Business expenditure – Provision for warranty – Held to be allowable as deduction .

S. 28(i) : Business income – Income derived from letting out of property to the tenants as income from business in the hands of the owner of the property- Assessable as business income [ S.14A, 22, 56 ]

S .14A : Disallowance of expenditure – Exempt income – Non recording of satisfaction – No disallowance can be made [ R.8D ]

S .14A : Disallowance of expenditure – Exempt income – Not earned any exempt income during the relevant year – No disallowance can be made [ R.8D ]

S. 12AA : Procedure for registration –Trust or institution- Entitle to registration [ S.12A]

S. 10A : Free trade zone – Deemed export made to another STP unit – Denial of deduction is not justified – Entitle deduction [ S.10B ]

S. 10 (23C): Educational institution-Eligible to exemption though no claim was made in the return- Educational purposes [ S. 10 (22), 10(23C)(iiiab) ]