S. 37(1) : Business expenditure-Not commenced business operations-lease rentals is allowed to be set off against lease rentals paid as well as excess expenditure allowable for capitalization.

S. 37(1) : Business expenditure-Accrual of liability-Payment of countervailing duty on imported goods-Claim to refund not a ground for treating liability as not accrued-Liability is held to be allowable as deduction. [S. 145]

S. 37(1) : Business expenditure-Self made vouchers-Ad hoc disallowance is not justified. [S. 145]

S. 37(1) : Business expenditure-CSR expenditure-Disallowance in lieu of Explanation 2 to Section 37(1)-No retrospective effect of Explanation 2-CSR Expenditure allowed.

S. 36(1)(va) : Any sum received from employees-Employees contribution to PF and ESI paid after the due date as per the relevant statutes but before filing of return of income under section 139(1) of the Act is not be disallowed.[S.43B, 139(1)]

S. 36(1)(iii) : Interest on borrowed capital-Interest paid to relatives and non-relatives-Difference between rate of interest charged by private money-lender and that charged by bank bound to exist-Assessee paying interest after deducting tax at source-AO failed to show that assessee utilised loan for purpose other than business-Interest expenses is held to be allowable.

S. 32 : Depreciation-On runway, isolation parking bay and roads, culverts and drains as buildings-Matter remanded for verification.

S. 28(i) : Business Loss-Non production of documentary evidence for hiring of trucks-loss on vehicle is not allowed.

S. 28 (i) : Business income-Low production as compared to earlier year, variation in yield ratio meager and in some cases less than one per cent-Addition is not sustainable. [S. 145]

S. 14A : Disallowance of expenditure-Exempt income-No exempt income earned during the year–Satisfaction is not recorded-No disallowance can be made–Delay of 133 days in filing of appeal is condoned. [S. 115JB, 253(3), R. 8D]