S. 40(a)(ia): Amounts not deductible – Deduction at source -Interest- Where recipient/deductee had already paid tax on impugned amount of interest under section 194A received from assessee by filing return of income, such interest payment could not be disallowed – Second Proviso to section 40(a)(ia) has retrospective effect from 1-4-2005 [ S.194A , 195(3) . 201(1) ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Supplier transported goods to assessee through their own transport agency-there was no contract between assessee and transporter- Not liable to deduct tax at source .[ S.194C]

S.37(1):Business expenditure -Sales promotion expenses- supply of certain products free of cost to Government hospitals and other hospitals in pursuance of purchase order placed by such hospitals- Allowable as business expenditure – Circular No 5/2012 dt. 1-8-2012 (2012) 346 ITR 95 (St) is prospective in nature .

S.37(1): Business expenditure- Insurance premiums of employees’ family members in terms of employment rules framed by assessee-company –Allowable as business expenditure. [ S.17 (2)(iv) ]

S.37(1):Business expenditure- Service charges paid to SRSR Advisory Services Pvt Ltd for advisory services in assessee business area, accounting services, collection of interest and dividend, taxation, ROC related matters and maintenance of its land properties etc.- Allowable as business expenditure .

S.37(1): Business expenditure – Payment of Rs. 20000/ made as per direction of Inspector of Legal Metrology as compensation/damages to avoid any future litigation – Allowable as business expenditure.

S.37(1): Business expenditure – Commercial expediency -Business man’s point of view – Service charges were paid to company SRSR for providing advisory services in assessee’s business area, accounting services, collection of interest and dividend, taxation, ROC related matters and maintenance of its land, properties, etc -There being no dispute that services was rendered to assessee, Assessing Officer cannot step into shoes of assessee to-re fix amount that should have been paid . S. 37(1) does not have any restriction to amount paid so long expenditure is incurred for business.

S. 37(1) : Business expenditure – Foreign exchange fluctuation loss- Advance of loan to Indian Permanent Establishment – loss is allowable as deduction – DTAA- India -Spain [S.9(1)(i), art .7 ]

S. 28(iv) : Business income – Value of any benefit or perquisites – Converted in to money or not –Non compete fee-Capital or revenue-Compensation of Rs 40 crores for discontinuing commodity trading business-Commodity trading was transferred entirely to its group concern without there being any impairment to business/profit making apparatus of assessee-company-Taxable as business – However when there was no principal and agent relationship between assessee and parent company, compensation received by assessee for discontinuing commodity trading was not from parent company and was not in lieu of surrender of any agency, compensation did not fall within ambit of taxation under section 28(ii)(c) [ S.28(ii)(c )

S. 36(1)(va): Any sum received from employees – Employees’ contribution to PF and ESIC – Amounts not deposited in relevant fund before due date as prescribed in Explanation to section 36(1)(va)- No deduction is allowable even though same was deposited before due date as stipulated under section 43B of the Act. [ S.43B , 139(1) ]