S. 37(1) : Business expenditure-Bad debts and investment-Written off-Investment and loans and advances to subsidiary-Failure to establish commercial and business expediency for making investment in subsidiary-Disallowance is affirmed. [S. 36(1)(vii)]

S. 37(1) : Business expenditure-Paying sponsorship fees to college in terms of agreement-Logo used on stationery items and books-Commercial wisdom-Expenditure allowable.

S. 37(1) : Business expenditure-Co-Operative Society-Banking business-Transfer of monies to funds-Overriding statute-Matter remanded to the Assessing Officer-Provision for standard assets-Allowable as deduction. [S. 36(1)(viia)]

S. 36(1)(iii) :Interest on borrowed capital-Real estate business-Borrowed capital not shown to be utilised for acquiring new unit, land or capital asset-Interest allowable as deduction. [S.43B]

S. 36(1)(iii) : Interest on borrowed capital-Advances to sister concerns-Interest-free funds available with assessee Presumption that advances were out of interest-free funds-Commercial expediency-Disallowance is not justified.

S. 36(1)(iii) : Interest on borrowed capital-Investment in subsidiary-Commercial reasons-Disallowance of proportionate interest not warranted-Failure by authorities to consider suo motu disallowance made by assessee-Matter remanded. [S. 14A]

S. 35 : Expenditure on scientific research-Submitted tabulation form regarding deduction of expenses-Matter remanded.

S. 23 : Income from house property-Annual value-Interest on borrowed to acquire property-Directed to allow deduction-Interest-Free Security Deposit-Notional Interest on interest-Free Security deposit could not be added to annual letting value of property. [S. 22, 24 (a)]

S.14A : Disallowance of expenditure-Exempt income-Investment held as stock-in-trade-Disallowance is restricted to exempt income. [R.8D]

S. 14A : Disallowance of expenditure-Exempt income-Disallowance is restricted to extent of exempt income earned.[R.8D]