S. 37(1) : Business expenditure-Power and fuel expenses-No defects in the books of account-Ad hoc disallowance is held to be not justified-Employees’ contribution to provident fund and employees’ state insurance corporation-Delay in depositing-Deduction allowable. [S. 36(1)(va)]

S. 37(1) : Business expenditure-Real estate business-Land acquired for development-Expenditure allowable as the business commenced no business income is declared-Expenses for development of residential or commercial project to be considered as work-in-progress.

S. 36(1)(iii) : Interest on borrowed capital-Loan for purchase of Office-Interest not allowable for period till asset put to use.

S. 36(1)(iii) : Interest on borrowed capital-External commercial borrowing loan-Expansion of existing business-Disallowance cannot be made.

S. 35 : Scientific research-Research and development facility should be approved by Prescribed Authority-Failure by prescribed authority to send intimation in Form 3CL-Weighted deduction cannot be denied. [S. 35(2AB), ITR 6]

S. 32 : Depreciation -Computer software —Intangible asset- Entitled to depreciation at 60% Per Cent.

S.32: Depreciation —Hotel business – Car parked at premises of managing Director – Depreciation cannot be disallowed – Gym equipment – Depreciation cannot be disallowed because it was used by managing director .

S .14A : Disallowance of expenditure – Exempt income – Presumption that the investment was made with interest free funds – Matter remanded [ R.8D ]

S .14A : Disallowance of expenditure – Exempt income – No exempt income earned during year — No disallowance permissible [ R.8D ]

S. 11 : Property held for charitable purposes – Microfinance to self help groups – No profit motive – Denial of exemption is not justified [ S. 2(15), 12A ]