S. 37(1) : Business expenditure-Provision for depreciation on AFS securities-Debited to profit and loss account-Allowable as deduction.

S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts-Schedule bank-Provisions are made as per direction of RBI-Allowable as deduction.

S. 36(1)(va): Any sum received from employees-Delayed payment of employee’s contribution towards PF and ESIC-Not allowable as deduction. [S. 37(1)]

S. 36(1)(iii) :Interest on borrowed capital-Interest on customer advances-Advances received from customers were utilized for business purposes as per MOU-Addition is deleted.

S. 35 : Expenditure on scientific research-Capital expenditure-Outside India-Not eligible for weighted deduction under section 35(2AB)-Eligible for deduction under section 35(1)(iv) of the Act.[S. 35(1)(iv), 35(2AB)]

S. 32 : Depreciation-Not claimed-Commercial manner-As per Explanation 5 to section 32(1), depreciation was to be allowed while computing its income in a commercial manner. [S.11, 12, 12A, 32 (1)]

S. 28(i) : Business income-Power generation-Interest income-Loans and advances to employees-interest income earned from loans and advances provided to employees is incidental to business of power generation and qualified as business income and not as income from other sources.[S. 56]

S. 26 : Income from house property-Co-owners-Association of persons-Maximum marginal rate-Tax rate applicable to individual Co-owners-Matter remanded to the Assessing Officer.[S. 22, 167B]

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

S.14A : Disallowance of expenditure-Exempt income-Merely because the AO did not expressly record his dissatisfaction about assessee’s calculation-The conclusion of the AO cannot be rejected-Only those investments are to be considered for computing disallowance under section 14A which yielded exempt income during year.[R.8D]