S.37(1): Business expenditure-Capital or revenue-Licence fee for use of software-Allowable as revenue expenditure.

S.37(1): Business expenditure-Setting up of business-Actual commencement of revenue-generating activity does not have any bearing on determining the date of setting up of business-Expenses incurred after the date of setting up of business are eligible for deduction. [S.28(i)]

S. 37(1): Business expenditure-Unrealised debtors-Write-off-Income offered in the subsequent years when realised-Order of CIT(A) deleting the addition was affirmed.

S. 36(1)(viia): Bad debt-Provision for bad and doubtful debts-Schedule bank-A co-operative bank, eligible for deduction even if it had no rural branches-Long-term finance-Eligible for deduction under section 36(1)(viii).[S. 36(1)(vii)]

S. 36(1)(iii): Interest on borrowed capital-Working capital loan-Interest-free loans were advanced in earlier years-Interest paid on working capital loan cannot be disallowed.

S. 36(1)(iii): Interest on borrowed capital-Limited scrutiny-Funds invested in short-term deposits-Assessing Officer had travelled beyond the limited scrutiny parameters for which the case was selected-Addition was deleted. [S. 143(3)]

S. 36(1)(iii) : Interest on borrowed capital-Share application money-Sister concern-Disallowance of interest is not justified-Borrowed money–transferred to sister concern. The Assessing Officer was directed to levy interest; however, only for the actual period of the loan, i.e., for one day.

S. 35 : Expenditure on scientific research-Bogus Donation-IMSRF was not notified under section 35(1)(ii), deduction claimed by assessee was disallowed-Reopening of assessment was affirmed.[S.35(1)(ii), 147, 148]

S. 32: Depreciation-Amalgamation-Goodwill-If consideration paid by the amalgamated company to the amalgamating company is more than the net assets acquired by it, then the differential amount shall be treated as goodwill, and the amalgamated company shall be eligible for a claim of depreciation on such goodwill. [S.2(IB),43(1)]

S. 32 : Depreciation-Lease of factory-Allowed earlier years-Allowed the depreciation.