S.37(1): Business expenditure-Payments for medical treatment of director of assessee abroad-Produced board resolution approving treatment and return of chairman declared the amount as perquisite-Matter restored to the file of Assessing Officer for verification-Offence-Payment of interest on customs duty on direction of Supreme Court-Allowable as deduction-Delayed payment of contributions to provident fund-Not allowable as deduction. [S.36(1)(va), 37(1), Expl.1]

S. 37(1) : Business expenditure-Repairs and Maintenance-Sales promotion-Disallowance on basis of percentage increase in expenditure in comparison to preceding year-Fallacious assumption-Disallowance is not justified.

S. 37(1) : Business expenditure-Capital or revenue-Expenditure relating to abandoned projects-Projects linked to existing business-Amounts written off-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Donation to trust for construction of statue of Sardar Vallabhai Patel former statesman-Enhancing brand value-Allowable as business expenditure.[S.80G]

S.37(1) : Business expenditure-Provision for expenses-Unascertained liability-Not allowable as deduction.

S. 36(1)(vii) :Bad debt-Income pertaining to bad debts written off offered to tax in earlier years-Order of CIT(A) remanding the matter to AO is affirmed.

S. 36(1)(va) : Any sum received from employees-Deduction only on actual payment-Contribution to provident fund and Employees’ State Insurance-Payment made beyond due date-Not deductible. [S.2(24(x) 43B]

S. 36(1)(iii) :Interest on borrowed capital-Interest paid to related parties higher than interest paid to banks-Disallowance is deleted. [S. 37(1)]

S. 36(1)(iii) :Interest on borrowed capital-Loans given to related parties interest-free-Having sufficient funds to meet investment-Disallowance is deleted.[S.37(1)]

S. 32 : Depreciation-Machine put to use before March 31-Depreciation is allowable.