S. 37(1) : Business expenditure –Capital or revenue- Manufacture of PVC and caustic soda and business of shipping , starting textile business- Abandoned project – Manufacture of New venture was managed from common funds, control over all business units and there was unity of control, it could not be said that pre-operative expenditure was incurred on a new line of business- Held to be allowable as revenue expenditure.
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.