S. 35 : Expenditure on scientific research-Capital expenditure allowable as deduction-Disallowance of balance amount is affirmed as per order of CIT(A). [S. 35(2AB]

S. 32 : Depreciation-Plant and machinery-Depreciation is allowable.

S. 32 : Depreciation-Trial runs-Aircraft put to use in subsequent year for training purposes-Depreciation and maintenance is allowable. [S. 37(1)]

S. 31 : Repairs-Capital or revenue-Expenditure for spare parts-Allowable as revenue expenditure.

S. 31 : Repairs-Current repairs-Capital or revenue-Treated capital in nature in books-Allowable as deduction-Matter is remanded to the Assessing Officer. [S. 37(1), 145]

S. 28(iv) : Business income-Value of any benefit or perquisites-Converted in to money or not-Capital Gains-Loss-Conversion of loan given to subsidiary to optionally convertible preference shares at face value-Merchant Banker’s valuation report-Not tax avoidance-Cost of acquisition tenable.[S. 41(1)]

S. 28(i) : Business income-Income from other sources-Leasing and finance-Interest-Non-Banking finance-Rule of consistency-Assessable as business income.[S. 56]

S.14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed amount of exempt Income. [S.10(34) R.8D]

S.14A : Disallowance of expenditure-Exempt income-Book profit-No disallowance can be made-Amendment disallowance of expenditure irrespective of receipt of exempt income-Not Retrospective-Order of CIT(A) is affirmed. [S.115JB, R.8D]

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