S. 37(1) : Business expenditure-Interest rate hedging contract-Underlying transaction was interest payable on loan-Loss or gain from interest rate swap arrangement is revenue.

S. 37(1) : Business expenditure-Provision for warranty claims-Estimate of provision on basis of past historical trend of warranty claims not reliable-Provision not allowable. [S. 145]

S. 37(1) : Business expenditure-Payment to sub-broker-Statement of third party was not confronted-No disallowance can be made.

S. 37(1) : Business expenditure-Capital or revenue-Market research expenses-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Prior period interest-Omission to book expenditure to closing work-in-progress rectified during year-No disallowance warranted. [S. 145]

S. 37(1) : Business expenditure-Employees’ Stock option plan-Loss on account of stock options-Allowable as deduction-Provision for gratuity-Allowable as deduction-Provision for approved gratuity fund-Allowable as deduction-Advance to employees welfare fund-Interest not disallowable. [S. 36(1)(iii), 40A(7), 43B]

S. 37(1) : Business expenditure-Debit of claim charges-Self made vouchers-No disallowance can be made-Ad hoc disallowance of 10 per cent-Not sustainable [S. 145]

S. 37(1) : Business expenditure-Capital or revenue-Expenses for insurance spare consumption-Revenue expenditure.

S. 32 : Depreciation-Uninterrupted power supply system-Part of computer-Entitled to depreciation at 60 Per Cent-Civil structure for water supply and drainage-Part of plant and machinery-Entitled to depreciation at 15 Per Cent.

S. 28(va) : Business income-Cash or kind-Compensation received for pre closure of contract manufacturing agreement-Capital receipt for loss of business or investment. [S. 4]