S. 40(a)(ia): Amounts not deductible – Deduction at source – Failure to deduct tax on interest paid on loan- Recipient had declared the interest in the return- The assessee is directed to substantiate that recipient has shown the interest in his return. [ S.194A, 201(IA) ]

S.37(1): Business expenditure — Defective goods – Addition based on presumptions and suspicions- Held to be not justified – Appeal – Commissioner (Appeals) -Power of enhancement- Enhancement of assessment had to be considered in the context of each issue raised in the appeal before the Commissioner (Appeals). [ S.251(2) ]

S.37(1): Business expenditure — Real estate development — Selling and administrative costs — Selling expenses – Revenue expenses after setting up of business is held to be allowable although revenue was not yet earned —Accounting Standard 7 .

S. 37(1) : Business expenditure -Payment to contractors benevolent Fund —Allowable subject to verification -Penalty- Delayed contract – Assessing Officer is directed to verify nature of default . 37(1) Explanation ]

S.37(1): Business expenditure — Labour charges — Road construction business -Some labour contractors not having complete knowledge of contract and looked after by their husbands — Disallowance is not justified .

S. 37(1) : Business expenditure – Salaries to employees- Allowable as deduction – Explanation I is not applicable .

S.37(1) : Business expenditure -Capital or revenue – Leasehold premises — Nature of expenditure to be examined before applying provision relating to ownership of asset [ S.32(1), Expln. 1. ]

S.32: Depreciation — Cost of construction of office block — High Court admitting the appeal of earlier year- Not entitle to depreciation following earlier year .[ S.254(1), 260A ]

S.28(i): Business income – Interest income –Fixed deposit – Rule of consistency – Directed to be assessed as business income .[ S.56 ]

S. 28(i) : Business income – Remission or cessation of trading liability -Introduction of Gold Bars in to business – Nether assessable as business income or cessation of liability [ S.41(1) ]