S. 37(1) : Business expenditure-Provision for wages-Pending labour demand regarding incremental wages-Held to be allowable Capital or revenue-Premium on redemption of foreign currency convertible Bonds-Prorate premium payable on redemption of foreign currency convertible Bonds-Allowable as deduction-Issue of foreign currency convertible bonds-Held to be allowable as revenue expenditure-Discount given on issue of employee stock ownership plan-Allowable as business expenditure. Employee’ welfare expenses-Amount paid to an educational institution where children of assessee’s employees were taking education-Held to be allowable as revenue expenditure-Provision made towards warranty-Held to be allowable-Discount on issue of employee stock ownership plan held to be allowable-Professional fee towards acquisition-Entities which did not materialize was to be allowed as revenue expenditure-Abandoned project-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Education expenditure-Personal expenditure-Disallowance is held to be justified. [S. 132]

S. 37(1) : Business expenditure-Pharmaceutical company-Freebies to doctors-Gifts as product reminders, travel facilities of doctors, conference of doctors or similar freebies to medical practitioners or their professional associations would not be hit by Explanation 1 to section 37(1).

S. 37(1) : Business expenditure-Repairs of machinery and replacement of some of its parts-Allowable as business expenditure. [S. 32]

S. 36(1)(vii) : Bad debt-Amount written off in the books of account-Allowable as deduction. [S. 36(2)]

S. 36(1)(iii) : Interest on borrowed capital-Borrowed funds used for giving interest free loan to sister concerns-Interest disallowable., interest on funds diverted for non-business purpose was to be disallowed.

S. 36(1)(ii) : Bonus or commission-Salary-Director-Shareholder Directors were given commission for promoting and increasing sale-Part of salary allowable as deduction. [S. 15]

S. 35 : Scientific research-Facility is recognised by prescribed authority, in-house R & D-role of-Assessing Officer is to allow expenditure incurred on in-house R&D facility as weighted deduction-in computing 90 days limitation period as provided under Rule 34(5) for pronouncing order, period of Covid-19 pandemic lockdown was to be excluded. [S.35(2AB, S.255]

S. 28(iv) : Business income-Value of any benefit or perquisites-Converted in to money or not-Premature payment of deferred sales tax at Net Present Value of certain amount against total liability-capital receipt-Not assessable as business income.

S. 28(i) : Business loss-Speculation business-Contract cancellation charges-Part and parcel of regular export business-Loss cannot be disallowed as speculative loss. [S. 73]