S. 32 : Depreciation-Car purchased in the name of director–Reflected in the balance sheet of the Company–Depreciation is allowable.

S. 32 : Depreciation-Income from house property–Properties continued to form block of assets–Depreciation is not allowable. [S. 2(11)]

S. 28(i) : Business loss-loss on account of shifting in securities–Fall in the value of investments allowable as a deduction irrespective of change in classification of investments to comply with RBI guidelines. [S. 37(1)]

S. 28(i) : Business loss-Purchase and sale of securities – loss arising from sale of securities–Allowable as business loss.

S. 28(i) : Business loss-Advance to subsidiary-Subsidiary has gone to liquidation-Loss is allowable as business loss. [S. 2(13), 37(1)]

S. 14A : Disallowance of expenditure-Exempt income-Not recording of satisfaction-No disallowance can be made. [R. 8D (2)(ii)]

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

S. 14A : Disallowance of expenditure-Exempt income-No disallowance can be made in absence of dividend income. [S.57(iii), R. 8D]

S. 14A : Disallowance of expenditure-Exempt income–For the calculation of average investments only those investments from which exempt income is derived. Assessee did not derive any exempt income matter remitted back to AO. [R. 8D]

S. 14A : Disallowance of expenditure-Exempt income – Without recording satisfaction – No disallowances can be made. [R. 8D ]