S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Waiver of principal amount of loan-Not chargeable to tax.

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Real estate development-Collaboration agreement-Financial and technical assistance-Commercial expediency-Disallowance is held to be not valid.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-lease rentals-lease under finance lease arrangement, no tax at source was to be deducted-Disallowance is held to be not valid. [S. 194C, 194I]

S. 37(1) : Business expenditure-Payment of rent allowable as revenue expenditure.

S. 37(1) : Business expenditure-Prepaid expenses-Matter remanded. [S. 145]

S. 37(1) : Business expenditure-Ad-hoc disallowance-When the books of account is not rejected-No disallowance can be made [S.144C, 145]

S. 37(1) : Business expenditure-Remuneration from various firms-Expenditure salary and wages to staff, postage, Travel and conveyance and legal fees etc. for earning such business income as claimed by assessee would be allowable-Income from other sources-Deduction-Matter remanded. [S. 57(iii)]

S. 37(1) : Business expenditure-Capital or revenue-Electronic design automation (FDA) software license-Right to use-Allowable as revenue expenditure. [S. 32]

S. 37(1) : Business expenditure-Capital or revenue-Expansion of business-Project abandoned-Held to be capital expenditure.

S. 36(1)(viii) : Eligible business-Reserve-Commercial loan-Borrower failed to construct on plot of land for residential purpose within three years has to be considered eligible business-Only the income which has direct and immediate nexus with grant of loans for construction of house only included for computation of deduction.