S. 36(1)(iii) :Interest on borrowed capital-Perpetual non-convertible debentures —Debentures as appropriation out of profits in financial statements 1Debentures repaid in exercise of call option 1Interest allowable as deduction.

S. 35 : Expenditure on scientific research-Weighted deduction 1Department of Scientific and Industrial Research not certified part of expenses and did not furnish reason – Assessing Officer is directed to examine issue a fresh thereafter.[S.35(2AB), R. 6(7A)]

S. 32 : Depreciation-Block of asset-Good will – Intangible assets – Commercial assets – Matter is restored. [S. 32(1(ii)]

S. 32 : Depreciation-Rate of depreciation 1Plant and machinery 1Additional depreciation 1Exploration of crude Oil-Production of articles or things-Depreciation allowable at 60 Per Cent. [S.32(1)(iia), ITR, 1962, Appx. I, Entry Iii(8)(xii).]

S. 32 : Depreciation-Written down value – Optional-Depreciation was not claimed when it was optional-Assessee cannot be thrust upon to reduce written down value of assets.

S. 32 : Depreciation 1Purchase of assets treated as bogus 1Proportionate disallowance of depreciation each year is proper.

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

S.14A : Disallowance of expenditure-Exempt income – Suo motu disallowance-Additional disallowance cannot be made by general remarks without satisfying himself as to correctness of disallowance – Addition is deleted.[R.8D]

S.14A : Disallowance of expenditure-Exempt income-Failure to record objective dissatisfaction-Not examined the working submitted by assessee – Disallowance is deleted.[R.8D]

S. 10AA : Special Economic Zones-Qualifying profits 1Computation 1Gross total income 1Deduction to be allowed from the total income and shall not exceed such total income. [S.80AB]