S. 37(1) : Business expenditure –Capital or revenue – Membership fee paid to National Stock Exchange for procurement of permanent right in form of licence to carry on trade was held to be capital in nature .

S. 37(1) : Business expenditure – Expenditure on levelling of land was held to be allowable – Presumption applies only to the extent of documents seized [ S.132(4A ]

S. 36(1)(vii) :Bad debt -Amounts written off was held to be allowable as deduction.

S. 36(1)(vii): Bad debt -Amount written in books of account although the entry was back dated was held to be allowable as deduction .

S. 36(1)(iii): Interest on borrowed capital —Interest free fund was used for purchase of land and construction of godown hence interest paid on borrowed capital was held to be allowable .

S. 36(1)(iii) :Interest on borrowed capital -Investment in subsidiaries- Nexus was established -Interest was held to be allowable deduction.

S. 36(1)(iii) :Interest on borrowed capital -Having its own capital at end of financial year relevant assessment year for advancing money for not charging interest , interest payment cannot be disallowed .

S. 36(1)(iii) :Interest on borrowed capital – Advance to director for the purpose of business- Disallowance of interest cannot be made .

S. 36(1)(iii) :Interest on borrowed capital – Borrowings for expansion of business, interest was held to be allowable as deduction-Amendment to S.36,with effect From 1-4-2004 is prospective and not retrospective.[ S. 37(1) ]

S. 36(1)(iii):Interest on borrowed capital — Interest free advances out of surplus funds hence interest was held to be allowable .