S. 37(1): Business expenditure -Bogus purchase -Restriction of profit rate of 12.5% per. cent. of bogus purchases was held to be proper.

S.37(1): Business expenditure — Bogus purchases —Civil contractor – Merely on the basis of information form sales tax department purchases cannot be disallowed without giving an opportunity of cross examination .

S. 37(1): Business expenditure — Civil contractor — Purchases- No defects was found in the books of account – No disallowance can be made [ S. 145 ]

S.37(1): Business expenditure — Ad hoc disallowance was held to be not sustainable .

S. 37(1) : Business expenditure – Deep excavation and road work related to mining operation was held to be allowable deduction. Miscellaneous capital expenditure was held to be not allowable .

S. 37(1) : Business expenditure -Godown rent, travelling expenses was held to be allowable as deduction.

S. 37(1) : Business expenditure -Reversal of excess income booked earlier year was held to be allowable as deduction .

S. 37(1) : Business expenditure -Donation to trust was held to be allowable as deduction.

S. 37(1) : Business expenditure -Club expenses of employees was held to be allowable as business expenditure .

S. 37(1): Business expenditure – When income is assessed as from profits of business, then expenses incurred by assessee for purpose of earning such income is allowable.