S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission paid-Export of software-Not liable to deduct tax at source-DTAA-India-Switzerland. [S. 5(2), 9(1)(vii), 195, Art. 12]

S. 37(1) : Business expenditure-Sales commission-Failure to prove service rendered-Disallowance is held to be justified.

S. 37(1) : Business expenditure-Compensation paid to employee through trust-Allowable as revenue expenditure. [S. 36(1)(iv), 36(1)(v), 40A(9)]

S. 32 : Depreciation-Road developed and maintained by it-Entitle to depreciation at 10 percent-Depreciation on Lease hold rights in land-Matter remanded back to Assessing Officer with the direction to analyse contents of agreement entered in to between assessee and SIPCOT and not go merely by nomenclature or title of document.

S. 22 : Income from house property-Building under construction-Pendency of an occupancy certificate-Addition cannot be made on notional basis. [S. 23]

S. 14A : Disallowance of expenditure-Exempt income-Provision would not be applicable if there was no exempt income earned by assessee during year. [R.8D]

S. 14A : Disallowance of expenditure-Exempt income-Ad-hoc disallowance cannot be made.

S. 11 : Property held for charitable purposes-Educational institutions-Matter remanded for fresh consideration. [S. 10(23C), 11(5), 13(1)(d)]

S. 11 : Property held for charitable purposes-Accumulation of income-Exemption cannot be denied merely on the ground of delay in filing the form No 10. [S. 12A, Art. 226]

S. 10B : Export Oriented undertakings-Manufacture or production-Providing contract research services in field of molecular biology and synthetic chemistry-Eligible for exemption.