S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission-Export commission to non-residents agents for services rendered outside India is not liable for withholding tax and, therefore, no disallowance could be made-7 of OECD model convention. [S. 9(1)(i), 195]

S.37(1): Business expenditure-Part of bad debt-Capital expenditure-Alternative claim-Matter remanded to remanded to Commissioner (Appeals) to verify and consider said claim-Disallowance on staff welfare, marketing, conveyance, travel, and miscellaneous expenses is restricted to 10%. [S.36(2)]

S. 37(1) : Business expenditure-Depreciation-Temporarily suspension of business-Dormant for some times-Eligible to claim revenue expenditure and depreciation of fixed assets. [S. 32]

S.37(1): Business expenditure-Percentage of completion method (POCM)-Provision for expected contract losses-Supported by scientific basis and AS-7-Allowable as deduction and no addition can be made to book profit. [S.115JB, 145]

S.37(1): Business expenditure-VAT penalty is compensatory in nature and would be allowable as deduction.

S.37(1): Business expenditure-Warranty provision-Provision is calculated based on DCF method in a scientifically sound and consistent method which complied with Accounting Standard 29 (AS-29)-Allowable as deduction.[S. 145]

S. 36(1)(iii) :Interest on borrowed capital-Interest free loan-Share capital and reserves and surplus far exceeding interest-free advances-No disallowance can be made-Matter remanded.

S. 36(1)(iii) :Interest on borrowed capital-Interest free advances-Sufficient own capital and free reserves-Disallowance of interest is deleted.

S. 35 : Expenditure on scientific research-Capital gains-Business discontinued-Deduction under section 35(1)(ii) can be claimed only from income falling under head Profits and gains of business or profession under section 28-; a Not entitled to claim deduction from capital gain.[S. 28(i), 35(1(ii), 45]

S. 32 : Depreciation-Toll roads-Constructing a road on BOT basis on Government land-Not owner of road-Toll bridge and toll roads are not tangible assets of assessee in terms of Explanation-3(a) to section 32(1)(ii) [S.32(1)(ii)]