S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Professional fees-Onus shift on revenue to show expenses excessive and not legitimate-Assessing Officer cannot contend that the expenditure is not required at all. [S. 37(1)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest on deposits-Tax not deducted-Declaration was furnished by depositors-Disallowance was deleted. [S. 194A, 197A(1), Form No. 15G]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Software purchase-Nature of trade-Not liable to deduct tax at source.

S. 37(1) : Business expenditure-Bank guarantee to execute project-Bank recovering from the assessee-Loss in the ordinary course of business-No element of fines or penalties-Allowable as business expenditure.

S. 37(1) : Business expenditure-Premium payable on redemption of debentures-Spread over period of debenture.

S. 32 : Depreciation – Rate of depreciation-Printer, Router, Scanner, Switches Forming Integral Part Of Computer System-Entitled To Depreciation At High Rate Of 60 Per Cent.-Bizerba weighing scales- Not part of computer-Not entitled to depreciation at 60 Per Cent.

S. 28 (i) : Business loss-Foreign exchange losses-Marked-to-market losses on hedging contracts-Allowable as deduction-Tribunal admitted additional grounds. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income-Not earned any exempt income-No disallowance can be made. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Interest-Expenditure not incurred-No disallowance cannot be made-Other Expenses at 0.5 Per Cent. of average value of investments – Only investments which earned exempt income to be considered for computing average value of investments. [R. 8D]

S. 12AA : Procedure for registration-Trust or institution-Colleges and hospitals-cancellation of registration-CBI report-No independent enquiry-Creditworthiness of donors and genuineness of transaction was established-Cancellation of registration was quashed. [S. 2(15), 12AA(3), 32, 133(6), Madhya Pradesh Societies Registration Act, 1973, S. 2]