S. 43B : Deductions on actual payment–Provision for Licence fee -Mercantile system of accounting-S.43B(1)(g) inserted with effect from 1-4-2017 will accordingly apply to assessment year 2017-18 and subsequent assessment years. [S. 43B(1)(g), 145]

S. 43(1) : Actual cost–Subsidy-Setting up new industry- Calculation of subsidy on the basis of sales tax or excise duty- Amount of subsidy was not to be deducted from actual cost for purpose of calculating depreciation etc. [S. 4, 32]

S. 42 : Business for prospecting-Mineral oil–Surrender of oil blocks before commencement of commercial production would be treated as surrender for claiming deduction of oil exploration expenditure. [S. 42(1)(a)]

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Sundry creditors shown in books of account merely on ground that assessee failed to furnish PAN or correct address of those creditors additions cannot be made.

S. 37(1) : Business expenditure–Consultancy fee-Investment research services, paid an amount to its foreign associate entity – Allowable as business expenditure.

S. 37(1) : Business expenditure–Membership fees paid to club by Chairman and Managing Director of company-Allowable as business expenditure.

S. 37(1) : Business expenditure–Capital or revenue-Legal and professional expenses-Litigation expenses -Buy back of shares– Allowable as revenue expenditure.

S. 32 : Depreciation–Purchase of business on slump sale- Intangible assets and marketing rights-Depreciation is allowable- Not a related concern-Provisions of S. 40A(2)(b) of the Act cannot be applied. [S. 40A(2)]

S. 28(i) : Business loss-Speculative transaction–Damages–Palm oil-Damages paid for not honouring commitments to take delivery against some purchase orders placed on foreign sellers– Allowable as business loss – Not speculative loss. [S. 43(5)]

S. 14A : Disallowance of expenditure-Exempt income-In absence of any exempt income disallowance cannot be made. [R. 8D]