S. 37(1) : Business expenditure –Actual payments made to Group Gratuity Scheme are allowable as deduction even though the same is not approved by the CIT. [S. 36(1)(v)]

S. 36(1)(iii) : Interest on borrowed capital – Where capital was borrowed for acquisition of fixed assets and only a part of assets were put to use, then interest was to be allowed only to the extent the assets were operational during the current year

S. 32 : Depreciation-Set-off of Unabsorbed depreciation – Any unabsorbed depreciation available on 01.04.2002 i.e AY 2002-03 would be carried forward as per amended provisions of 32(2) of the Act without any time limit. [ S.32(2)]

S. 28(i) : Business income- Income from house property-Income from letting out of premises/developed space along with other amenities in industrial park/SEZ is to be charged under head profits and gains of business. [S. 22]

S. 14A : Disallowance of expenditure – Exempt income –Disallowances can be made only where the AO recorded his satisfaction as to how the claim of the Assessee that no expenditure was incurred to earn exempt income is incorrect. [R. 8D]

S. 14A : Disallowance of expenditure – Exempt income –Provision would not apply where no exempt income was received or receivable during relevant previous year by assessee. [R. 8D ]

S. 5 : Scope of total income -Accrual- Interest on Government securities which has become due and payable alone can be considered as accrued and taxable. [S. 28(i), 145]

S. 4 : Charge of Income tax – Capital or revenue -Subsidy received from Government for setting up of an industry in the backward area was to be treated as a capital receipt.

S. 4 : Charge of income-tax – Compensation received by the assesse in lieu of withdrawal of criminal complaint filed against a person for impersonation and forging Assessee’s signature on a document relating to sale of shares of a company is not taxable as income. [S. 2(24)]

S. 271(1)(c) : Penalty – Concealment – Capital gains- Cost of acquisition- In case of inadvertent mistake in computation of income by assessee, no penalty can be imposed for furnishing inaccurate particulars of income. [ S.45 ]