Interest Income Deduction Partially Allowed; Non-Compete Fees Not Taxable Pre-2002; Tax-Free Bond Disallowance Deleted.

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....Deduction claimed u/s 36(1)(viii) for interest income from housing finance for non-residential purposes was disallowed, excluding such amounts from computing eligible profits. Following the appellate order for the previous year, the disallowance was partly allowed after recomputing eligible income afresh. Allocation of provisions for contingencies and interest on foreign currency borrowings was directed to be reapportioned based on income characterization into eligible and ineligible business activities. Disallowance of expenses towards earning exempt dividend income u/s 10(33) was partly allowed, with directions to reallocate other expenses based on the ratio of investments yielding exempt income. Disallowance u/s 14A for income-tax free b.........