S. 37(1) : Business expenditure-Business loss-Capital or revenue-Acquiring company-Investment in subsidiaries-Write off expenditure-Acquiring business-Allowable as revenue expenditure. [S. 28(i)]

S. 37(1) : Business expenditure-Rejection of books of account-Adhoc disallowance on suspicion and conjectures, without rejecting the books of account not justified. [S. 145]

S. 36(1)(iii) : Interest on borrowed capital-Addition made by simply suspecting that the amount of interest paid in excessive-addition cannot sustain as no strong reason given by the AO-Addition is not valid.

S. 36(1)(iii) : Interest on borrowed capital-Question of diversion of funds for non-business purposes would only come into play in case of interest free advance or loan to another company and not in case of investment in another company.

S. 36(1)(iii) : Interest on borrowed capital-Interest paid by assessee partner to a Firm on debit balance, on account of withdrawal for tax payment-Held disallowance not justified as the end use of withdrawn funds from firm is immaterial. [S. 153A]

S. 32 : Depreciation-Solar plant-Put to use-Depreciation is allowable. [S. 32(1)(ii)]

S. 32 : Depreciation-Block of assets-Cylinder-Asset sold-Reduced from Block-Return asset-Added to the asset block. [S. 2(11), 32(1)(ii)]

S. 28(i) : Business income-Undisclosed sources-Unaccounted stock-Declared during survey-Assessable as business income and not u/s 69A as unexplained money-Remuneration and interest paid to Partners from said excess stock disclosed as business income allowable as deduction. [S. 69A, 40(b)(iv), 133A]

S. 22 : Income from house property-Business income-Rental Income earned by assessee by renting out its warehouse building, who is not in business of letting out properties, cannot be assessed as income from business or profession, but has to be assessed as income from house property. [S. 22]

S. 12A : Registration-Trust or institution-CIT(E) cannot merely rely upon one selective aim and object to deny registration. [S. 11, 80G]