S.43B: Deductions on actual payment-Payment of TDS inadvertently misreported under cl. 26(B)(b) of From No. 3CD-the matter is restored to the jurisdictional AO with a direction to verify the correctness of the assessee’s claim and re-adjudicate the allowability of payments under S 43B in accordance with law.

S. 41(1): Profits chargeable to tax-Remission or cessation of trading liability-Creditors outstanding for a long time-The amount due to the creditors is not chargeable to tax.

S. 40A(3): Expenses or payments not deductible-Cash payments exceeding prescribed limits-Alleged non-genuine purchases-lack of proper enquiry-Matter is restored to the AO with a direction to conduct a de novo assessment on this issue after carrying out proper and comprehensive enquiry regarding various aspects.[S.133(6)]

S.40(a)(iib): Amounts not deductible-Business expenditure-Collection and payment of privilege fee, special privilege fee, etc. to the State Government-Disallowance was deleted. [S.37(1), A.P. (Regulation of Trade in Indian made Foreign Liquor, Foreign Liquor) Act, 1993, S 4]

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Fees for technical services-Marketing support services-Payment cannot be taxed in view of the application of provisions of s. 90(2)-Payment made to ADP cannot be disallowed under S. 40(a)(i) for non-deduction of TDS under S. 195-DTAA-India-Australia [S. 9(1)(vii), 90(2), 195 Art. 7, 12(3)]

S.37(1): Business expenditure-Insurance premium paid on the insurance policy of a partner-Loan was granted with the condition of obtaining an insurance policy of one partner-Allowable as business expenditure.

S.37(1): Business expenditure-Penalty, fine, etc.-Payment made to intermediaries/ aggregators towards outsourcing of policy servicing activities-The payment made to the aggregators is allowable as a deduction.

S. 35: Expenditure on scientific research-Non-submission of Form No. 3CL-Weighted deduction not allowable-Allowable as a deduction under S 35(1)(i) and 35(1)(iv). [S. 35(1), 35(1)(iv), 35(2AB)]

S. 32: Depreciation-Copyrights-Block of assets-Depreciation was allowed in earlier years-The AO is directed to delete the disallowance of depreciation.[S. 2(11), 32(1)(ii)]

S.32: Depreciation-Intangible asset-Goodwill arising pursuant to amalgamation-Depreciation on goodwill is allowable-Unabsorbed-Carry forward and set off-Depreciation once allowed cannot be disregarded in subsequent years for the purposes of S. 32(2) [S. 32(2)]