S. 40(a)(ia) : Amounts not deductible-Deduction at source-Settlement of loan shown in profit and loss account-No expenditure was claimed-No disallowance can be made.

S. 37(1) : Business expenditure-Provision for advertisement-Liability crystalised in the following year-Not allowable-Provision for warranty-Directed to verify and allow.

S. 37(1) : Business expenditure-Appointment of consultant as per agreement-Failure to get the business-Disallowance cannot be made-Not liable to deduct tax at source-DTAA-India-UAE. [S. 40(a)(i), Art. 14(7), 22(1)]

S. 37(1) : Business expenditure-Salaries paid-Relative of promoter-No disallowance can be made-The Assessing Officer is not entitle to decide reasonableness and commercial expediency of expenditure.

S. 37(1) : Business expenditure-Chartered Accountants firm-Payment of subscription fees and reimbursement of its share to international group entity-Allowable as deduction-Criminal complaint filed against partner of firm related business of firm-Professional fees paid towards defending suit in the name of partner-Allowable as business expenditure.

S. 37(1) : Business expenditure-Power and fuel expenses-No defect in books of account-Financial statement audited-Ad Hoc Disallowance is held to be not justified. [S. 145]

S. 36(1)(va) : Any sum received from employees-Employees’ contribution to provident fund and employees’ state insurance corporation-Delay in depositing-Deduction allowable. [S. 37(1)]

S. 36(1)(iii) : Interest on borrowed capital-Fresh loan taken for repaying loan taken earlier-Interest paid on fresh loan allowable as deduction.

S. 32 : Depreciation-Temporary discontinuance of business-Lull in the business-New assets acquired during the year-Depreciation allowable.

S. 32 : Depreciation-Car parked at premises of managing director-Gym Equipment-Depreciation cannot be disallowed on the ground that it was used by the managing director.