S. 36(1)(iii) : Interest on borrowed capital-Interest free loans to wholly-owned subsidiary-Commercial expediency-Interest on borrowed capital allowable as deduction.

S. 32 : Depreciation-Ownership of asset-Car loan-Vehicle registered in name of director-Vehicle used in business-Entitle to depreciation and interest paid on car loan. [S. 37(1), Motor Vehicles Act, 1988]

S. 32 : Depreciation-Use of vehicle-Neither log book maintained nor any income earned during the year-Disallowance is justified-Legal expenses-No business carried on-Not allowable as deduction. [S. 37(1), 38(2)]

S. 32 : Depreciation-Demerger-Acquisition of fixed asset-Denial of depreciation is not justified. [S. 2(19AA), 43(1)]

S. 32 : Depreciation-Assets installed and kept ready-Depreciation allowable-Assets need not be used for whole year.

S. 32 : Depreciation-Goodwill-Amalgamation of companies-Depreciation on goodwill acquired to be allowed. [S. 32(1)(ii), 43(1), 43(6)]

S. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed the exempt income [R.8D]

S. 14A : Disallowance of expenditure-Exempt income-Exempt income not received during year-No disallowance can be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Only those investments, which have yielded exempt income has to be considered for the purpose of computing average value of investments for computing the disallowance. [R.8D]

S. 12AA : Procedure for registration-Trust or institution-Interest income earned on investment of surplus funds-Assessable as income from other sources and not as business income-Depreciation not allowable. [S. 32, 56]