S. 37(1) : Business expenditure-Environmental, Travelling, Office maintenance expense-Matter remanded to the Assessing Officer.

S. 37(1) : Business expenditure-Abandoned project-Link with existing business-Allowable as deduction-Payment of bonus commensurate with efforts-Allowable as deduction. [S. 36(2)]

S. 37(1) : Business expenditure-Business Expenditure-Business-Setting up of business and commencement of business-Allowable as deduction.

S. 36(1)(iii) : Interest on borrowed capital-Sufficient interest-free funds available for investment in sister concerns-Interest on borrowings not to be disallowed.

S. 36(1)(iii) : Interest on borrowed capital-Capitalisation of interest paid up to date of installation of machinery-Interest relating to assessee’s own funds utilised in purchase to be excluded in computing the interest to be capitalized.

S. 36(1)(iii) : Interest on borrowed capital-Interest-free advances received from customers were available-Interest-free loans given to subsidiaries-Proportionate disallowance of interest not warranted.

S. 14A : Disallowance of expenditure-Exempt income-Share application money pending allotment at year end-Not to be treated as investment yielding exempt income. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Interest-Disallowance of interest on net interest-Higher interest income-No disallowance can be made-Sufficient interest free funds-Presumption that investment and advances were made out of such funds-No interest to be disallowed. [S. 36(1)(iii), R. 8D]

S. 14A : Disallowance of expenditure-Exempt income-Interest-Own funds more than the investment-Presumption is investment is from own funds-No disallowance of interest can be made-Erroneous disallowance shown in the return-Indirect expenses-Only investments actually yielding exempt income to be considered for working out disallowance-Assessment cannot be based on consent or acceptance of assessee either in return or during course of assessment or Appellate Proceedings. [S. 143(3), R. 8D(2)(iii), Art. 265]

S. 14A : Disallowance of expenditure-Exempt income-Not earning any dividend income during year and not claiming exemption-Disallowance cannot be made. [R. 8D]