S. 37(1) : Business expenditure-Capital or revenue-Software expenses-Arrears of wages-Ex-gratia payment-Allowable as business expenditure-Payment made to Registrar of Companies for increasing authorised capital-Not allowable as revenue expenditure.

S. 36(1)(vii) :Bad debt-Provision made for bad debts-Banking company-Allowable as deduction though not debited in profit and loss account. [S. 145]

S. 36(1)(vii) : Bad debt-Advance paid for acquisition of capital asset-Amount written off-Not allowable as bad debt. [S. 37(1)]

S. 36(1)(iii) : Interest on borrowed capital-Commercial expediency-Borrowed funds not diverted to sister concerns-Allowable as deduction. [S. 37(1)]

S. 32(2) : Depreciation-Unabsorbed depreciation-Set-off-Allowed to be carried forward and set off after a period of eight years without any limit as per section 32 (2) as amended by Finance Act, 2001. [S. 32]

S. 32 : Depreciation-Business of mining and transportation-Dumpers-Higher rate of depreciation of 30% is allowable-No substantial question of law. [S. 260A]

S. 32 : Depreciation-Part of building let out to sister concern-Disallowance of depreciation is held to be justified. [S. 22]

S. 28(i) : Business income-Income earned by letting out of property for running software Technology park-Assessable as business income. [S. 22, 56]

S. 17(2) : Perquisite-Valuation of perquisites- Salary – Deduction at source -Rent as per Rule 3-Accommodation provided by Central Government and State Government to its employees-Not applicable to undertakings controlled by Central or State Governments. [S. 15, 192, ITR, 1962, R. 3]

S. 14A : Disallowance of expenditure-Exempt income-Failure to examine the contention that no expenses were incurred to earn exempt income-Matter remanded. [S. 254(1), R.8D]