S. 37(1): Business expenditure-Prior period expenses-Provision for gratuity already disallowed by assessee-Double disallowance not permissible-Matter restored.[S. 145]

S. 36(1)(va) : Any sum received from employees-Employees’ contribution to Provident Fund and ESI-Deposit beyond due date-Disallowance forms part of business income and not income from other sources-Employees’ contribution to Provident Fund and ESI-Deduction not allowable under general provision of section 37(1).[S.2(24)(x), 37(1)]

S. 36(1)(iii) : Interest on borrowed capital-Business expenditure-Loans to sister concerns-Consistent view in earlier years-Disallowance deleted.[S. 37(1)]

S. 36(1)(iii) : Interest on borrowed capital-Business expenditure-Interest-free advances to land co-owners-Advances towards co-owners’ share of project consideration-Disallowance deleted. [S.37(1)]

S. 32: Depreciation-Computer accessories-Uninterrupted Power System eligible for 60 per cent. depreciation-Projector not part of computer system-Computer software-Tangible asset-Eligible for depreciation at 60 per cent.

S. 28(i) : Business income-Income from house property-Service centre operations-Commercial exploitation with various amenities-Assessable as business income.[S. 22]

S. 24 : Income from house property-Deductions-Interest on borrowed capital-Building partly let out and partly used for business-Apportionment of interest on area basis-Deduction allowable.[S. 22]

S. 14A : Disallowance of expenditure-Exempt income-No exempt income earned-Disallowance not sustainable. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-No exempt income earned-No disallowance permissible. [R. 8D]

S. 11: Property held for charitable purposes-Charitable purpose-Advancement of object of general public utility-Business-Microfinance activities carried on with predominant profit motive-Exemption denied.[S. 2(15), 12, 12AA]