S. 37(1) : Business expenditure-Foreign exchange fluctuation loss-Loan to subsidiary-Allowable as business expenditure. [S. 28(i)]

S. 37(1) : Business expenditure-Capital or revenue-Hotel business-Lessee-Renovation expenses-Held to be revenue expenditure.

S. 37(1) : Business expenditure-Ex gratia payment to employees is held to be allowable as deduction on account of commercial expediency.

S. 37(1) : Business expenditure-Paid by account payee cheque-Held to be allowable though the purchaser has informed that no agent was involved in the contract.

S. 36(1)(iii) : Interest on borrowed capital-Loan given to sister concern-Without charging interest-Disallowance of interest was held to be not valid.

S. 32 : Depreciation-Unabsorbed depreciation-Amalgamation-Unabsorbed depreciation of amalgamating company allowed to be set off against income of amalgamated company for assessment year 2008-09 i.e. beyond period of eight years [S.32].

S. 32 : Depreciation-Unabsorbed depreciation-Carry forward and set off of-Unabsorbed depreciation loss for assessment year 1995-96 to be carried forward and set off against future profits beyond eight years holding that amendment by Finance Act, 2001 and CBDT Circular No. 14/2001 was applicable retrospectively. [S. 32 (2), 72]

S. 32 : Depreciation-Goodwill-Held to be allowable.

S. 28(i) : Business loss-Foreign exchange forward contract loss-Allowable as business loss.

S. 28(i) : Business income-Income from other sources-Interest earned from surplus fund assessable as business income-Expenditure is held to be allowable as business expenditure. [S. 37 (1), 56, 260A]