S. 37(1): Business expenditure-Insurance premium of director paid by Company-Not incurred wholly and exclusively for the purpose of business-Not allowable as deduction-Bogus purchases-Entire bogus purchase cannot be added-Addition restricted to 12.5% of alleged bogus purchases.-Delay of 177 days was condoned. [S. 133(6), 254(1)]

S. 37(1) : Business expenditure-Reimbursement of service tax-Commercial expediency —Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Free samples and distribution of infant and children’s nutrition food-Not allowable as deduction-Expenditure incurred on arranging conferences and seminars-Not allowable as deduction.[Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 (Relevant Act),S. 4]

S. 37(1) : Business expenditure-Capital or revenue-Capital asset-Payment to its Indian counterpart for acquiring part of its business relating to debt collection service-Expenditure incurred for acquiring completely new business set up was income generation tool-Capital in nature.[S. 32]

S. 37(1): Business expenditure-Commercial expediency-Professional and consultancy charges-Matter remanded.

S. 37(1) : Business expenditure-Employee Stock Option Plan-(ESOP)-Allowable as revenue expenditure.

S. 36(1)(vii): Bad debts-Failer to substantiate-Not allowable as deduction. [S. 36(2)]

S. 36(1)(va) : Any sum received from employees-Employee’s contribution held in trust -Failure to pay within due date under respective Acts-Not allowable as deduction. [S. 2(24)(x),43B,139(1)]

S. 36(1)(iii) : Interest on borrowed capital-Business expenditure-Interest payment to legal heirs of dead partner-Deducted tax at source-Cannot be disallowed on the ground of passing of entry-Matter remanded. [S. 37(1), 40 (b) (iv), 194A]