S. 37(1) : Business expenditure-Prior period expense-Method of accounting-Not proved with necessary evidence-Commission-Lack of evidence-Disallowance is affirmed. [S. 145]

S. 37(1) : Business expenditure-Ad-hoc basis-Books of account not rejected-Disallowance of expenses and purchase differences-Revenue stamps not affixed-Books of accounts audited-Purchase differences reconciled with suppliers-Ad hoc disallowance not sustainable.[S. 133(6), 145]

S. 36(1)(iii) :Interest on borrowed capital-Work-in-progress-Out of own funds and borrowed funds-Disallowance is deleted.

S. 36(1)(iii) : Interest on borrowed capital-Consistent methodology Interest-free advance given to an individual for the purpose of business was held to be genuine and allowable.

S. 36(1)(ii):Bonus or commission-Directors had declared salary and bonus-Entitled to claim deduction in respect of payment of bonus to its directors.

S. 32 : Depreciation-Rate of depreciation-Computer software-Depreciation allowable at 60 Per Cent.

S. 32: Depreciation-Car registered in name of director-Funds utilized of the company-Depreciation is allowable to the company.

S. 17(3) :Salary-Profits in lieu of salary-Ex-gratia compensation-After termination-Not taxable as profits in lieu of salary-Appellate Tribunal-Powers-Departmental representative is not permitted to set up an altogether a new case [S. 15, 254(1)]

S. 14A : Disallowance of expenditure-Exempt income-Sufficient interest bearing funds-Suo moto made disallowance-Addition is deleted. [R.8D(2)(ii), 8D(2)) (iii)]

S. 12A : Registration-Trust or institution-Rejection of applicarion on the ground of wrong code selected for provisional registration-and barred by limitation-Mistakes committed while applying registration could be condoned-Commissioner (E) directed to hear and dispose of request of assessee by allowing it to apply under Form 10A. [S. 12AB, Form 10A, 10AB]