S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Engaged in providing services and facilities relating to exploration and exploitation of mineral oil and natural gas Interest-Not taxable in India.[DTAA-India-Singapore [S. 9(1)(1), 44BB, 195, Art. 5, 7,]

S.37(1): Business expenditure-Sales promotion expenses-Construction project-Allowable as revenue expenditure-AS-7 was purely effective for contractor in construction, not for developers, question of capitalizing project cost of sale promotion was unjustified.[S.145, AS-7]

S. 37(1) : Business expenditure-Business loss-Advance for purchase of business-Failure to supply goods-Trade advances-Advance written off allowable as business loss. [S.28(i), 36(2), 37 (1)]

S.37(1): Business expenditure-Employee Stock Option (ESOP)-Disallowance is deleted.

S. 36(1)(iii) : Interest on borrowed capital-Advanced funds for commercial purposes without charging interest-Advanced from interest free funds-Order of CIT(A) confirming the disallowance is deleted.

S. 32AC: Investment in new pant or machinery-Installation of machinery-Blending of lube oil tantamounts to manufacture or production-Entitle to deduction.

S. 32 : Depreciation-Computer software-Depreciation is allowable at rate of 60 per cent.

S. 24 : Income from house property-Deductions-Interest on borrowed capital-Interest on housing loan-Let-out property-When the property is let out there is no maximum deduction on interest on borrowed capital Interest on housing loan allowable as deduction under section 24 for let-out property, based on bank certificate and consistent claims in previous years.[S. 22]

S.14A : Disallowance of expenditure-Exempt income-Interest-Own fund were much higher than investments that yield exempt income-Order of CIT(A) deleting the addition is affirmed. [R.8D(2)(ii)]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Payment to specified person-Payment of salaries-Much higher educational qualification or they were having much experience in service-Exemption is allowed-Payment of rent-Market rental report prepared by a Government approved registered Valuer-Provisions under section 13(3)(c), 13(2)(c) read with section 13(2)(g) were not attracted. [S.11,12A, 13(2)(c), 13(3), 13(2(g)]