S. 36(1)(iii) : Interest on borrowed capital-Interest free advances directors-capital reserve was more than the amount advanced and profit-Disallowance is not justified.

S. 32 : Depreciation-Intimation-Not claimed in the return by mistake-Rectification-As per Explanation 5 to section 32, even if depreciation was not claimed in return of income depreciation is allowable. [S. 139. 143(1), 154]

S. 32 : Depreciation-Additional depreciation-Windmill-Generation of electricity-Eligible to claim additional depreciation. [S. 32(1)(iia)]

S. 28(i) : Business income-Land dealings-Sale of residential plots by plotting agricultural land-Purchase of immoveable property-Assessable as business income and not capital gains-Matter remanded to determine capital gains till the date of conversion and business income thereafter. [S. 2(13), 45, 54B, 54F]

S. 24 : Income from house property-Deductions-Interest paid on loan-Flat mentioned in the loan agreement and deduction claimed was different-Deduction is not allowable. [S. 22, 24(b)]

S. 23 : Income from house property-Annual value-Vacancy allowance-Property vacant for whole or any part of previous year-Vacancy allowance is allowable. [S. 22, 23(1)(c)]

S. 14A : Disallowance of expenditure-Exempt income-Disallowance is restricted to extent of considering only those investments which yielded exempt income-Notional interest-Matter remanded for verification. [S. 4, R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Dividend from his personal investments-Deletion of addition is justified. [R. 8D]

S. 12AB : Procedure for fresh registration-Condition for granting registration-Granting registration for three years is held to be not valid-Direction issued for grant of registration for five years-Matter remanded. [S. 12A(1)(ac)(i), 12AB(1)(c) Form No. 10AC]

S. 11 : Property held for charitable purposes-Granting of tenancy to a company in which the trustees are interested-Premium charged-No violation of section 13((3)-Denial of exemption is not justified. [S. 12A, 13(3)]