S. 37(1) : Business expenditure-Loss in hedging contracts with Foreign Exchange dealers and banks-Not speculative allowable as business expenditure. [S. 28(i), 43(5)]

S. 36(1)(vii) : Bad debt-Amounts written off in accounts-Not necessary to prove that amount had become irrecoverable.

S. 37(1) : Business expenditure-Capital or revenue-Expenditure on software-Allowable as revenue expenditure.

S. 35D : Amortisation of preliminary expenses-Premium collected on issued share capital-Not part of capital employed-includible in preliminary expenses for amortisation-Cost of acquisition of companies does not form part of project expenses-Deduction to be distributed in subsequent years. [S. 37(1)]

S. 28(i) : Business loss-Bad debt-No evidence that loss was connected with business-Disallowance of loss is justified. [S. 36(1)(vii), 260A]

S. 28(i) : Business Loss-Loss in stock-in-trade-Allowable as business loss.

S. 14A : Disallowance of expenditure-Exempt income-Not earned any exempt income-Amendment providing for disallowance even if assessee has not earned exempt income is not retrospective-Precedent-Special Leave petition pending before Supreme Court but order of court not stayed-Binding on Tribunal-Interpretation of taxing statutes-Provision for removal of doubts cannot be presumed to be retrospective if it alters or changes Law as it stood. [R. 8D]

S. 11 : Property held for charitable purposes–Activities charitable in nature-Remanding matter-No substantial question of law. [S. 2(15), 12AA, 260A]

S. 10AA : Special Economic Zones-Computation of turnover-Telecommunication expenses not to be excluded from export turnover.

S. 10 (23C) : Educational institution-Solely for educational purposes and not for purposes of profit-Profits of business not exempt unless business incidental to attainment of objectives and separate books of account maintained in respect of such business-Institution should also comply with provisions of State laws regulating activities of charitable institutions-Commissioner not bound to examine only objects of institution-Free to call for audited accounts or documents for recording satisfaction whether institution genuinely seeks to achieve objects-Prospective declaration of law-Appeals against rejection of applications for approval-Appeals dismissed-Law declared departing from previous rulings-Applications to be considered in light of subsequent events disclosed in fresh applications-Law declared by Supreme Court to operate prospectively-Interpretation of taxing statutes-Literal interpretation-Proviso[S. 2(15) 10(23C(vi) 11(4A), Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, S 1(3)(A), 2(4), (5), 43, 44.]