S. 69C : Unexplained expenditure – Bogus purchases – Information from sales tax Department – Sales not doubted – Books of account not rejected – Order of Tribunal affirming the estimate of profit at 12. 5% of alleged bogus purchases are affirmed – Court also observed that , it is the solemn obligation and duty of the Income Tax Authorities and more particularly of the A.O. to undertake all necessary enquiry including to procure all the information on such transactions from the other departments / authorities so as to ascertain the correct facts and bring such transactions to tax. [ 133(6), 145 (3)]

S. 37(1) : Business expenditure-Salary, Daily Allowance And Festival Expenses And Expenses On Telephone, Vehicle, General, Travelling, Business, Promotion, Staff Labour Cost Of Uniform-Estimate at 10 Per Cent is held to be reasonable-Failure to produce evidence-Disallowance is proper.[S.80C]

S. 37(1) : Business expenditure-Bad debts and investment-Written off-Investment and loans and advances to subsidiary-Failure to establish commercial and business expediency for making investment in subsidiary-Disallowance is affirmed. [S. 36(1)(vii)]

S. 37(1) : Business expenditure-Paying sponsorship fees to college in terms of agreement-Logo used on stationery items and books-Commercial wisdom-Expenditure allowable.

S. 37(1) : Business expenditure-Co-Operative Society-Banking business-Transfer of monies to funds-Overriding statute-Matter remanded to the Assessing Officer-Provision for standard assets-Allowable as deduction. [S. 36(1)(viia)]

S. 36(1)(iii) :Interest on borrowed capital-Real estate business-Borrowed capital not shown to be utilised for acquiring new unit, land or capital asset-Interest allowable as deduction. [S.43B]

S. 36(1)(iii) : Interest on borrowed capital-Advances to sister concerns-Interest-free funds available with assessee Presumption that advances were out of interest-free funds-Commercial expediency-Disallowance is not justified.

S. 36(1)(iii) : Interest on borrowed capital-Investment in subsidiary-Commercial reasons-Disallowance of proportionate interest not warranted-Failure by authorities to consider suo motu disallowance made by assessee-Matter remanded. [S. 14A]

S. 35 : Expenditure on scientific research-Submitted tabulation form regarding deduction of expenses-Matter remanded.

S. 23 : Income from house property-Annual value-Interest on borrowed to acquire property-Directed to allow deduction-Interest-Free Security Deposit-Notional Interest on interest-Free Security deposit could not be added to annual letting value of property. [S. 22, 24 (a)]