S. 37(1) : Business expenditure – Sales incentive was payable only after and when dealers had met sales figures from 1-4-2003 to 30-06-2004 in this period – Expenditure cannot be disallowed on the ground that it pertaining to earlier year.[ S.145]

S. 37(1) : Business expenditure – Provision for medical benefit of its employees post retirement –Held to be allowable.

S. 37(1) : Business expenditure – Provision for medical benefit of its employees post retirement –Held to be allowable.

S. 37(1) : Business expenditure –Security charges-merely for non filing of confirmation disallowances cannot be made-Order of Tribunal is affirmed .

S. 37(1) : Business expenditure – Capital or revenue- In view of fact that advanced technology software become obsolete within short intervals-Expenditure incurred on software expenses is held to be revenue expenditure.

S. 37(1) : Business expenditure –Commission payments made to agents who procured orders and themselves were made liable to recover price of goods sold by them – Held to be allowable as deduction.

S. 37(1) : Business expenditure – Software development -Provision towards liability for warranty for goods supplied was not crystalised during relevant year and it was merely provisional in nature-Not allowable as deduction.[ S.145 ]

S. 37(1) : Business expenditure – Salary paid to a sweeper for cleaning premises and hall which is in the name of founder of the company is held to be not allowable as deduction.

S. 37(1) : Business expenditure –Publicity expenses- Donations to support educational and social activities is held to be allowable as business expenditure.

S. 36(1)(v) : Contribution approved gratuity fund -Contributions paid to LIC as premium for policy obtained for indemnification of gratuity liability towards employees, even for prior years, when employees were in employment of company taken over by assessee would be eligible for deduction .[S.37(1)]