S. 37(1) : Business expenditure-Franchisee agreements for operating stores-Renovation and repairs of stores-Revenue expenditure-Education Cess and secondary and higher education cess-Allowable as deduction-Employees Stock Option Plan-Additional grounds admitted-Matter remanded.

S. 36(1)(va) : Any sum received from employees-Contribution to Employees Provident Fund and Employees’ State Insurance Corporation-Delay in depositing-Deduction not allowable. [S. 2(24)(x)]

S. 35D : Amortisation of preliminary expenses-Share capital to Public through initial public offer-Utilising 92 Per Cent. of receipts on working capital-92 Per Cent. of share issue expenditure allowable as revenue expenditure-Balance 8 Per Cent. to be treated as capital expenditure. [S. 37(1)]

S. 28(i) : Business loss-Advance for business purposes-Amount written off-Allowable as business loss. [S. 37(1)]

S. 22 : Income from house property-Annual letting value of rented property-Municipal rateable value much less than rental income shown-Addition cannot be made on guess work. [S. 23]

S. 14A : Disallowance of expenditure-Exempt income-Entire expenditure cannot be disallowed. [R. 8D]

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

S. 11 : Property held for charitable purposes-Education-Publication of Text books and selling of school text books-Surplus income utilised for education-Entitled to exemption. [S. 2(15), 11(4A), 12]

S. 10A : Free trade zone-Expenditure of telecommunication charges, insurance charges, etc.-Travel expenses incurred in foreign currency-Deductible from both export turnover and total turnover-Loss on account of employee misappropriation-Deduction allowable on enhanced profit.

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Payment made for use of software-Does not give rise to royalty-not table in hands of assessee-DTAA-India-USA. [Art. 12]