S. 37(1) : Business expenditure – Salaries to employees- Allowable as deduction – Explanation I is not applicable .

S.37(1) : Business expenditure -Capital or revenue – Leasehold premises — Nature of expenditure to be examined before applying provision relating to ownership of asset [ S.32(1), Expln. 1. ]

S.32: Depreciation — Cost of construction of office block — High Court admitting the appeal of earlier year- Not entitle to depreciation following earlier year .[ S.254(1), 260A ]

S.28(i): Business income – Interest income –Fixed deposit – Rule of consistency – Directed to be assessed as business income .[ S.56 ]

S. 28(i) : Business income – Remission or cessation of trading liability -Introduction of Gold Bars in to business – Nether assessable as business income or cessation of liability [ S.41(1) ]

S. 24 : Income from house property – Deductions – Interest on borrowed capital — Part of self-owned house property let to unmarried son and daughter —No evidence that arrangement not genuine — Loss on account of interest to be adjusted against rental income —Interest on entire property not allowable as rental income part of house property. [ S.24(1)(b) ]

S. 15 : Salaries – Director- Assessable on accrual basis and not on receipt basis — Salary shown in form 26 AS filed by company alone to be taxed — Assessing Officer is directed to examine factual aspect [Companies Act, 1956, Schedule XIII ]

S. 14A : Disallowance of expenditure – Exempt income -— Investments not generating any income — Disallowance of interest on borrowed funds uilised for making investments cannot be made .[ R.8D ]

S. 12AA : Procedure for registration –Trust or institution- Education — Yoga – Entitle to registration [ S.2(15) 11 ]

S. 11 : Property held for charitable purposes – Donations – If disclosure of income in hands of assessee as corpus fund and income applied for charitable purposes and assessee has due registration- Addition cannot be made as cash credits . [ S.12A, 68 ]