S. 36(1)(va): Any sum received from employees-Delayed employees’ PF/ESI contributions on ground that figures in Form 3CD included both employer’s and employees’ portions-Matter was remanded to the file of CIT(A) to verify actual delay, segregate employer’s and employees’ contributions, and restrict disallowance only to employees’ share deposited after statutory due dates.[S.43B, 143(1)]

S. 36(1)(iii): Interest on borrowed capital-Advances to group concerns at lower interest-No disallowance if assessee’s own funds exceed interest-free advances-Nexus established between borrowings and business use-Ad hoc disallowance based on average rate unjustified-Addition is deleted. [S. 40A(2)(b)]

S. 36(1)(iii): Interest on borrowed capital-Commercial expediency-Disallowance is deleted.[S.37(1)]

S. 36(1)(iii): Interest on borrowed capital-Addition was based on mere guesswork and surmises, and the same was deleted.

S. 36(1)(iii): Interest on borrowed capital-Commercial expediency-Interest allowed in earlier year-The principle of commercial expediency applied mutatis mutandis to the corresponding portion, and such disallowance was not warranted.[S. 251]

S. 35AC: Expenditure on eligible projects or schemes-Donations-Had valid approval at the time of payment-Information from Investigation wing-No evidence that donation was bogus or returned cash-Subsequent withdrawal of approval or cancellation of registration under section 12AA(3) could not justify disallowance of deduction under section 35AC of the Act. [S.12AA(3), 35AC(6), 131, 132, 143(3),147, 148]

S. 35 : Expenditure on scientific research-Business expenditure on in-house R&D facility-Claimed weighted deducted-AO denied as Form 3CL was missing-Held, post amendment, Form 3CL is a requisite for claiming deduction under S. 35(2AB)-Not entitled to deduction. [S.35(2AB]

S. 35: Expenditure on scientific research-Entitled to claim deduction under S. 35(2AB) even in respect of expenditure incurred prior to approval date, i.e. from 1-4-2019.[S.35(2AB]

S. 35: Expenditure on scientific research-Business expenditure-Withdrew higher claim-Entitled to 100% deduction of revenue expenses under section 35(1)(i) and depreciation on R&D assets under section 32(1).[S. 32(1), 35(1)(i), 35(2AB), 43(4), Form 3CL]

S. 35: Expenditure on scientific research-Approval was granted by DSIR during the previous year-Entitled to claim weighted deduction in respect of entire expenditure incurred under section 35(2AB)[S.35(2AB)]