S. 40(a)(ia): Amounts not deductible-Deduction at source]-Payment of sales commission and cash incentives to retailers-the assessee filed various evidences including confirmation from the parties to prove the genuineness of said expenditure, adverse inference cannot be drawn merely because the notices issued under s. 133(6) were returned unserved by the postal authorities.[S.37(1), 133(6), 194H]

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Commission paid to non-resident agents-Services rendered outside India]-No disallowance can be made for failure to deduct tax at source. [S.9(1)(i), 195]

S.37(1): Business expenditure]-Accrual-Provision for claim pay out in respect of guarantee fee-allowable as a deduction.[S. 145]

S. 37(1): Business expenditure]-Interest on delayed payment of tax deducted at source]-Allowable as business expenditure. [S. 40(a)(ii), 201(IA)]

S.37(1): Business expenditure]-Commission for securing a loan]-Allowable as business expenditure.

S. 35: Expenditure on scientific research-Approval of DSIR-In the absence of any statutory requirement for the DSIR to quantify or approve each expense prior to 1st July, 2016, the claim of weighted deduction under S. 35(2AB) cannot be restricted to the amount mentioned in Form No. 3CL. [S. 35(2AB]

S. 35: Expenditure on scientific research-Allocation of common expenses to tax-exempt units-Eligible undertaking-Separate books and verifiable entries-Disallowance is not sustainable. [S.10AA, 80IC, 80IE]

S.32: Depreciation-Intangible asset-Slump sale-Acquisition of manufacturing, supply and maintenance contracts-Goodwill-AO is directed to treat the excess of consideration paid over and above the fair market value of the assets and liabilities as goodwill and allow depreciation-Depreciation-Unabsorbed-Carry forward and set off-set off of brought forward unabsorbed depreciation pertaining to asst. yr. 2008-09 cannot be denied on the basis that for that assessment year the assessee filed its return of income under S. 139(4) [S.2(42C),32(1)(ii), 32(2), 50B, 72, 80,139(4)]

S. 32: Depreciation-Intangible asset-Goodwill arising pursuant to amalgamation-The excess consideration paid is bona fide, attributable to commercial intent, and not a colourable device-The goodwill constitutes a depreciable asset]-Depreciation is allowable. [S.2(IB), 32(1)(ii)43(1), 43(6), 49(1)(iii)(e)]

S. 28(iv): Business income-Value of any benefit or perquisites-Converted into money or not-Shares received on a loan basis-Neither the existence of any written agreement itself is determinative of the character of the transaction per se, nor absence thereof prevents the AO from assessing the circumstantial and surrounding circumstances to arrive at a lawful conclusion-No benefit can be said to have accrued to the assessee-The liability towards repayment of such loan transactions continues to exist during the year-Tere is no remission or cessation of any liability towards lender-Book profit-Books of account not rejected]-Addition deleted]-Addition is not sustainable. [S. 41(1), 115JB, 131, 133A]