S. 44C : Non-residents-Head office expenditure-Permanent establishment-Reimbursing head office towards subscription charges paid on its behalf —Not fees for technical services – DTAA-India-USA [S.9(1)(vii), Art. 12]

S.43B: Deductions on actual payment-Provision for leave encashment 1Claimed only of amounts actually paid during previous year 1Disallowance is deleted. [S. 145]

S. 43A : Rate of exchange-Foreign currency-Restatement of payables for capital assets-Matter remanded.

S. 42 :Business for prospecting-Mineral oil-Production Sharing Contracts with Government of India —Commissioner (Appeals) is justified in directing Assessing Officer to allow entire expenses claimed in C Block and K Block. [S. 37(1)]

S. 40A(3) :Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of sweets-Disallowance of 20 Per Cent. of payment is justified.[R.6D]

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Payment to American Bank for listing shares in Luxembourg Exchange 1Fees for technical services – Provisions of Double Taxation Avoidance Agreement is not considered —Matter remanded to the Asssessing Officer. [S.9((1)(vii)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Services rendered by parties-Bills were raised in next year-Payees were not identifiable-Voluntarily disallowed of expenses would not automatically enable Assessing Officer to treat it as assessee in default1Cannot be treated as assessee in default.[S. 201 (1), 201(IA)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Shortfall in deduction of tax at source —Disallowance is deleted-Proper course of action was proceeding under section 201[S. 201]

S. 37(1) : Business expenditure-Contribution to Gratuity Fund 1Payments to Life Insurance Corporation of India towards Group Gratuity Scheme and Employees receiving payments from Life Insurance Corporation for their Gratuity as and when occasion arose 1Payments from Gratuity Fund to employee during his lifetime treated as salary 1Application for approval of Gratuity Fund made in 2002-Approval granted by order dated 4-10-2023 with effect from 3-1-2023 —Allowable as deduction. [S.36(1)(v), Form No 3CD]

S. 37(1) : Business expenditure-Business loss 1Capital or revenue —Writing off amount due to non-recognition of project —Directed the Assessing Officer to examine the disallowance-Dispute-Prior period expenditure paid this year-Not allowable as deduction. [S. 28(i), 145]