S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-One time settlement (OTS) scheme-Provision for bad and doubtful debt was higher than amount of such bad debt claimed by it-First set off against such credit balance in balance.

S. 36(1)(iii) : Interest on borrowed capital-Advance to sister concern-Interest free funds more than the advance to sister concern-No disallowances can be made.

S. 32 : Depreciation-Stock exchange card-demutualized/corporatized into shares in earlier year-Depreciation is held to be allowable.

S. 32 : Depreciation-Vehicles-Registration was in the name of individual directors-Depreciation cannot be denied.

S. 32 : Depreciation-Plant and machinery-Installed and ready to use-Depreciation is allowable.

S. 28(i) : Business income-Firm-Partner-Set off of loss-Interest, salary, bonus, commission or remuneration received or receivable from firm by partners-Assessable as business or profession-Expenditure incurred to earn such income allowable as deduction. [S. 37(1), 70]

S. 14A : Disallowance of expenditure-Exempt income-Investment from interest free funds-No disallowance of interest could be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-No disallowance can be made when no exempt was earned during year. [R. 8D]

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

S. 12AA : Procedure for registration-Trust or institution-Surplus fund invested in fixed deposit-Registration cannot be denied on the ground that some of the objects were religious. [S. 2(15), 11]