S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Amount not claimed as expenditure-No disallowance can be made-Exemption certificate for non deduction of tax at source- Once certificate has been issued no disallowances can be made- If income is not chargeable to tax in India-No disallowance can be made- Once it is held that income is not chargeable to tax in India, no disallowance can be made. [S. 195, 197]
S. 37(1) : Business expenditure — Provision for non-moving inventory — consistent treatment from year to year in return, allowable for deduction. [S. 145 ]
S. 37(1) : Business expenditure—Provision for warranty expenses — provision made based on transactions carried out in preceding three years on scientific basis and method consistently followed in past such expenditure is allowable. [S. 145]
S. 37(1) : Business expenditure-Capitalised in the books of account as work in progress-Revised return claiming as allowable revenue expenditure -Held to be allowable. [S. 145]
S. 37(1) : Business expenditure –Brand building – Advertisement expenses- Held to be revenue expenditure.
S. 36(1)(vii) : Bad Debt — Write-off in books of account sufficient compliance, no further requirement to prove debt has become bad.
S. 36(1)(iv) : Contribution to recognized provident fund– Amalgamated company -Matter remanded. [S. 37(1)]
S. 32 : Depreciation-Pollution control equipment–Failure of the authorities to examine the nature of equipment–Matter remanded.
S. 28(i) : Business Loss — Write off of stores and parts -Imported goods were lying in custody of port authorities in bonded warehouse- Relinquishing its right and title to goods- Goods lost their life for use in its business-loss is incidental to business and allowable as business loss. [S. 37(1)]
S. 22 : Income from house property – letting out of its permanent structured on regular basis is assessable as income from house property – Receipt of license fee for use of craft stalls organized with object of promoting tourism, is taxable as business income. [S. 28(i)]