S. 37(1) : Business expenditure-Funds borrowed for setting up a thermal plant-Interest expenses till date of commissioning of power production i.e., prior to use of assets, was to be capitalized to cost of asset-Interest expenses incurred after commencement of power production-Allowable as revenue expenditure. [S.43 (1)].
S. 37(1) : Business expenditure-Expansion of existing business-Capital or revenue-New project of starting a hotel chain-Allowable as revenue expenditure.
S. 37(1) : Business expenditure-Professional choreographer-Office-cum residence-Electricity-Service charges-Compensation and electricity paid to society in respect of portion of residence used as office-Allowable as business expenditure.
S. 37(1) : Business expenditure-Rents-Proportionate disallowance of lease rentals-Held to be not valid-Supplementary Rent (SR) paid to lessors-Not reimbursement-Allowable as deduction.
S. 36(1)(va) : Any sum received from employees-Provident fund Employee’s contribution-Deposited before due date of filing of return-No disallowance can be made-Adjustment proposed by centralized processing centre was not sustainable. [S. 139(1), 143(1)]
S. 36(I)(v) : Contribution approved gratuity fund-Approval of Commissioner-Non-approval of scheme after more than 14 years-Contribution made cannot be disallowed. [S. 40(a)(ia)]
S. 36(1)(iii) : Interest on borrowed capital-Business of real estate-Borrowed money for the purpose of business-Lent idle money to third parties at same rate of interest-Interest expenses allowable as deduction-Alternative interest expenses allowable as deduction u/s. 57(iii) of the Act. [S. 37(1), 57(iii)]
S. 36(1)(iii) : Interest on borrowed capital-Trial run-Interest attributable from the date of trail run till date of commercial production allowable as revenue expenditure. [S. 43(1), ICDS IX and AS-16]
S. 36(1)(iii) : Interest on borrowed capital-Professional choreographer-Office-cum residence-Flats used office-cum residence-Interest paid on acquisition of flats allowable as deduction.
S. 32 : Depreciation-Car registered in the name of Director-Depreciation, expenses and interest is held to be allowable. [S. 37(1)]