S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Payment of freight charges to foreign shipping companies-Disallowance was affirmed.[S. 5(2), 195]

S. 37(1): Business expenditure-State tax paid in USA-Not claimed any benefit of the tax paid in the USA under the provisions of S. 90/91-State tax paid in USA is allowable as deduction.

S.37(1): Business expenditure-Advertisement material and goods-Purchase of icebox and plastic tables and chairs, bearing the logo-Allowable as business expenditure.

S.37(1): Business expenditure-Foreign exchange fluctuation loss-Working capital-Allowable as a deduction. [S. 145, AS-11]

S. 36(1)(iii): Interest on borrowed capital-Percentage of completion method for recognizing the revenue-ICDS IX provisions are not applicable to asst. yr. 2014-15. There is no provision in s. 36(1)(iii) to apportion the interest cost between the work-in-progress and the sales-Interest allowable as deduction.

S. 35: Expenditure on scientific research-Approval by prescribed authority-The deduction as claimed by the assessee under s. 35(2AB) is to be allowed-Prior to the amendment of R. 6, the provision of S 35(3) did not provide for referring to DSIR for determining the amount of expenditure eligible for deduction. [S.35(2AB), 35(3), R.6 (7A)]

S. 32AC: Investment in new plant or machinery-Computers used in the business of development of computer software-Eligible for investment allowance-Remanded for verification.

S. 32: Depreciation-Additional depreciation-Computers used for the production of software-Plant and machinery-Eligible for additional depreciation. [S. 32(1)(iia)]

S. 32: Depreciation-Actual cost-Sales-tax subsidy-subsidy is to be deducted from the cost of fixed assets for the purpose of depreciation computation as per Expln 10 to s. 43(1).[S.43(1)]

S.28(i): Business income-Income from house property-Income from renting out house properties to tourists and pilgrims on a day-to-day basis-Assessable as business income-Depreciation is allowable. [S. 22, 24(a), 32(1(ii)]