S. 36(1)(iii) : Interest on borrowed capital-Investment company-Commercially expedient-Difference between interest received and paid by assessee for purpose of business-Deletion of disallowance was affirmed. [S. 37(1)]

S. 35 : Scientific research expenditure-Donations to research organisations-Deduction cannot be denied on the ground that registration granted was cancelled with retrospective effect. [S. 35(1)(iii)]

S. 32 : Depreciation-lease of assets-Genuine transaction-Entitle to depreciation.

S. 28(i) : Business loss-Amalgamation-Excess of liabilities over assets-Allowable as business loss /deduction-Matter remanded with direction. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income-suo motu disallowance-Failure to give cogent reason for dissatisfaction-Deletion of addition is justified. [R. 8D(2)(iii)]

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

S. 14A : Disallowance of expenditure-Exempt income-Not incurred any expenditure in earning dividend income-No disallowance could be made. [R. 8D]

S. 11 : Property held for charitable purposes-Running educational institution to students and staff-Hostels for students-Incidental to providing education as per object of trust-Charitable purpose-Entitle to exemption. [S. 2(15)]

S. 10(10C) : Public sector companies-Voluntary retirement scheme-Religuished charge as Managing Director and took over as advisor-Denial of exemption was not justified-Order of Tribunal was held to be utterly perverse, non speaking and without taking note of the factual position which has been brought out by the the CIT(A). [S. 254(1), 260A]

S. 10AA : Special Economic Zones-Special Economic Zones-Newly established Units-Export turnover-Telecommunication charges attributable to delivery of computer software outside India could not be excluded from export turnover-Telecommunication expenses and insurance charges, representing payment towards standard delivery and not delivery of software, being not incurred in foreign currency were to be excluded from export turnover. [S. 800HHC, 800HHE]