S.37(1): Business expenditure-Bogus creditors-Trading in fabrics-Goods purchased were duly sold, and sales stood accepted; input of goods could not be doubted, and expenditure was to be treated as genuine, but 25 per cent of unverifiable purchases was disallowed. [S.41(1), 133(6)]

S.37(1): Business expenditure-Special reserve-Amount transferred to special reserve pursuant to the provision of section 45 IC of the RBI Act, 1934 is an appropriation of profit and not allowable as a deduction or excludable; the amount transferred was required to be added back to book profit under section 115JB [S.115JB RBI Act, 1934, S.451C]

S.37(1): Business expenditure-Salary to employees-No disallowance was proposed in the show-cause notice-Order of CIT(A) deleting the disallowance was affirmed.

S.37(1): Business expenditure-Insurance premium-Loan to firm on an insurance policy on the life of one of its partners-Insurance premium paid allowable as a deduction.

S.37(1): Business expenditure-Setting up of business-Power Purchase Agreement-Expenditure incurred for the purpose of business after setting up of business was allowable for deduction.

S.37(1): Business expenditure-towards Employee Stock Option Plan (ESOP)-International Stock Ownership Plan (ISOP)-Paid to parent company-Allowable as deduction.

S. 36(1)(viii): Eligible business-Special reserve-Minimum alternate tax-Taxable in the year in which the amount is withdrawn from such reserve-Amount transferred to reserve under section 36(1)(viii) shall not be included in book profit under section 115JB.[S.115JB]

S. 36(1)(vii): Bad debt-Subsidy-Offered as income in earlier years-Unrecoverable subsidy allowable as bad debt.

S. 36(1)(va): Any sum received from employees-Deposited ESI contribution on 16-10-2017 for September 2017, when the due date was 15-10-2017, which happened to be a public holiday, i.e., Sunday-One day delay on account of a public holiday-Allowable deduction. [S.43B General Clauses Act, 1897, S.10]

S. 36(1)(iii): Interest on borrowed capital-sufficient non-interest-bearing funds–car loan–disallowance of interest is not justified.