S. 56 : Income from other sources-Business income-Director of company purchased one unit in a Hotel, had given for being run by a managing company, said unit could not be construed to be a business of assessee-loss from hotel unit assessed under head income from other sources and not as business loss. [S. 28 (i), 57]

S. 54B : Capital gains-Land used for agricultural purposes-Neither Depositing amount in capital gains account nor using net consideration for purchase of land before prescribed date-Not entitled to exemption. [S. 45]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Transaction duly considered in Income-Tax returns of payee-No disallowance could be made Advertisement-Franchisee news paper-Liable to deduct tax at source. [S. 194C, 201(1)]

S. 37(1) : Business expenditure-Business promotion expenses-Not practically possible to furnish complete list of gifts to various customers-Quantum of expenditure vis-a-vis turnover would have to be justified-Restriction of 40 Per Cent. of initial total disallowance is held to be reasonable.

S. 37(1) : Business expenditure-Employees stock option plan Expenses-Allowable as revenue expenditure.

S. 36(1)(iii) : Interest on borrowed capital-Paying interest thereon at 12.2 Per Cent. and advancing loans charging interest at 7.25 Per Cent. and 10 Per Cent.-Disallowance is held to be not justified.

S. 36(1)(iii) : Interest on borrowed capital-Intercorporate deposits agreement with assessee and its subsidiaries-Commercial expediency-Interest deductible.

S. 35DDA : Amortisation of expenditure-Voluntary retirement scheme – Expenses incurred prior to insertion of section – Governed by earlier provisions. [S. 37 (1)]

S. 32 : Depreciation-Computer software-60% depreciation is allowable.

S. 14A : Disallowance of expenditure-Exempt income-No exempt income during the year-No disallowance can be made.[R. 8D]