S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payment genuine-Necessitated by circumstances-No disallowance can be made-Block assessment-Addition deleted on facts-No question of law. [S. 260A]

S. 37(1) : Business expenditure-Capital or revenue-Commuted and discounted lease rent-Allowable as revenue expenditure.

S. 35D : Amortisation of preliminary expenses-Demerger-Spin Off-Entitled to amortisation of expenses on demerger.

S. 32 : Depreciation-Building-Road-Entitle to depreciation at 10%-Depreciation on property held on lease-Depends on terms of lease-Matter remanded. [S. 32(1)(ii)]

S. 32 : Depreciation-Carry forward and set off-Unabsorbed depreciation on 1-4-2002 can be carried forward and set off without taking into account number of years of such carry forward. [S. 32 (2)]

S. 14A : Disallowance of expenditure-Exempt income-No dividend income earned-Disallowance cannot be made [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-No exempt income-Disallowance cannot be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Enhancement of disallowance is held to be not valid. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Onus on revenue to prove that disallowance was erroneous-Without examining the accounts disallowance is not justified [R.8D]

S. 12AA : Procedure for registration-Trust or institution-Bogus donations-Misuse of registered status-Cancellation of registration is held to be justified. [S. 12AA(3), 80G]