S. 37(1) : Business expenditure-Interest on capital borrowed-Advances and loans to Associated enterprises-Advances Converted to equity in subsequent year not rendered quasi capital unless conversion made at time of grant of loan-Matter remanded to the CIT(A) [S.36(1)(iii), 92]

S. 37(1): Business expenditure-Capital or revenue-Expenditure-Disallowance on percentage basis-Disallowance on estimate basis is not proper.

S. 37(1): Business expenditure-Membership fees for club-Welfare of employees providing business benefits-Allowable as expenditure.

S. 37(1): Business expenditure-Community development-Operation of aluminium mines causing pollution in neighbourhood-Assistance with respect to drinking water, education, women and children welfare, etc., for villagers-Commercial exigency to ensure smooth running of factories-Allowable as deduction.

S. 37(1) : Business expenditure-Commission payments-Non-service of notice under section 133(6)-Evidence and details furnished in remand report-Denial of expenditure for mere return of summons unserved is improper.[S.133(6)]

S. 36(1)(iii) :Interest on borrowed capital-Trade receivable-Borrowed fund is used for the purpose of business-Notional interest cannot be charged.

S. 36(1)(iii) :Interest on borrowed capital-Interest paid on cash credit account-Investments in immovable properties and shares of other companies-Business purpose-Disallowance is deleted.

S. 36(1)(iii) :Interest on borrowed capital-Advances and loans to associated enterprises-Deletion of disallowance is affirmed.

S. 36(1)(iii) :Interest on borrowed capital-Capital expenditure on plant and machinery, electrical installation and other fixed assets-Accounted as capital work-in-progress-Disallowance of interest is not warranted.

S. 36(1)(iii) :Interest on borrowed capital-Interest paid on cash credit account-Investments in immovable properties and shares of other companies-Business expenditure.[S. 37(1)]