S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Pond and farm maintenance expenses-No evidence was produced to prove that the payments had been made to cultivator, grower or produced-Disallowance was confirmed. [R. 6DD(e)]

S. 40(b)(iv) : Amounts not deductible-Partner-Interest-Pro-rata basis-Average opening and closing balance. [S. 36(1)(iii), 37(1)]

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess-Allowable as deduction [S.37 (1)]

S. 40(a)(ii) : Amounts not deductible-Rates or tax- Education cess and, higher and secondary education cess is not tax-Allowable as deduction. [S. 37 (1)]

S. 37(1) : Business expenditure-Dividend distribution tax-Not allowable as deduction.

S. 37(1) : Business expenditure-Telephone expenditure-Disallowance for alleged use by partners was deleted.

S. 37(1) : Business expenditure-Plant repair and maintenance expenses-Failure to produce supporting documents-5% of disallowance was held to be proper.

S. 37(1) : Business expenditure-R&D expenditure-Automobile industry-Claimed 70 percent as capital and 30 percent as revenue-No matching concept-Held to be capital in nature-Entitle for depreciation. [S. 32]

S. 37(1) : Business expenditure-Brokerage expenditure-Deferred expenditure in books of account-Allowable as business expenditure.

S. 37(1) : Business expenditure-Brokerage expenditure-Deferred expenditure in books of account-Allowable as business expenditure.