S. 36(1)(iii): Interest on borrowed capital-Working capital loan-Interest-free loans were advanced in earlier years-Interest paid on working capital loan cannot be disallowed.

S. 36(1)(iii): Interest on borrowed capital-Limited scrutiny-Funds invested in short-term deposits-Assessing Officer had travelled beyond the limited scrutiny parameters for which the case was selected-Addition was deleted. [S. 143(3)]

S. 36(1)(iii) : Interest on borrowed capital-Share application money-Sister concern-Disallowance of interest is not justified-Borrowed money–transferred to sister concern. The Assessing Officer was directed to levy interest; however, only for the actual period of the loan, i.e., for one day.

S. 35 : Expenditure on scientific research-Bogus Donation-IMSRF was not notified under section 35(1)(ii), deduction claimed by assessee was disallowed-Reopening of assessment was affirmed.[S.35(1)(ii), 147, 148]

S. 32: Depreciation-Amalgamation-Goodwill-If consideration paid by the amalgamated company to the amalgamating company is more than the net assets acquired by it, then the differential amount shall be treated as goodwill, and the amalgamated company shall be eligible for a claim of depreciation on such goodwill. [S.2(IB),43(1)]

S. 32 : Depreciation-Lease of factory-Allowed earlier years-Allowed the depreciation.

S. 23: Income from house property-Annual value-Stock-in-trade-Notional rent has to be determined on vacant unsold flats held as stock-in-trade as ‘Income from house property-No addition could be made to the assessment year before assessment year 2018-19 on such notional rent. [S. 22, 23(4)(b), 23(5)]

S. 22: Income from house property-Rent reimbursed to purchasers-Not assessable in the hands of assessee.[S. 23]

S.14A: Disallowance of expenditure-Exempt income-Disallowance cannot exceed the exempt income.[R.8D]

S. 12AB: Procedure for fresh registration-Violation of the principle of natural justice-Rejection of application without giving specific reasons-Order of CIT(E) was set aside, and the matter was remanded to adjudicate the application afresh. [S. 12A]