Held, that the scheme has been designed with a view to encourage and provide financial assistance to the meritorious students. The assessee as a part of its advertisement and promotional scheme had been floating scholarship schemes in the past and also in the later years, as was also done in the current year. The assessee used to organise a big level function in the honour of the successful students, during the course of which they were awarded certificates with cheques.. Similar schemes were floated and the outstanding was claimed as a liability and no similar disallowance had been made in the past. In the absence of any change in the facts and in the circumstances of the case, the liability towards the amount payable under the scholarship scheme was rightly claimed and the authorities below were not correct in disallowing it. Held that  expenditure for new electricity connection  and Meter cost, Internet networking expenses,payment to Municipality for name transfer fee  is allowable as revenue expenditure. Expenses incurred for extension of height of existing boundary wall is  capital expenditure.  Expenses for regularisation of  construction  Penalty imposed by Urban Improvement Trust on account of  unauthorised construction is not allowable as business expenditure  (AY.2010-11)