S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Interest-Interest on loans paid to Indian and Foreign banks-Legal fees-Not liable to deduct tax at source-Disallowance is not justified-DTAA-India-USA-Rebate for early payment is not interest-Not liable to deduct tax at source.[S.2(28A), 194A, 195, Art. 12]

S. 37(1) : Business expenditure-Lease rentals on vehicles and computers-Matter remanded to the Assessing Officer.

S. 37(1) : Business expenditure-Value added tax and central sales tax-Sums not shown to have been paid into Government treasure -Claiming fraud committed by agent-Complaint filed against tax Auditor and copies of first information report and crime investigation department report produced before Commissioner (Appeals) —Matter remanded to the Assessing Officer for verification.

S. 37(1): Business expenditure-Fuel charges, cleaning wages, greasing-Telephone, Staff Welfare And Office Uniform Expenses-Salary-ad-hoc disallowance is not justified-Allowable as deduction.

S. 37(1) : Business expenditure-Salary, depreciation, audit fees-Not earning any income-Expenditure to maintain corporate entity-Directed to allow 25 Per Cent. of expenditure.

S. 37(1) : Business expenditure-Grading and certification expenses-Payments were made after deducting tax at source-Ad-hoc disallowance is not justified.

S. 37(1) : Business expenditure-Capital or revenue-Land registration charges-Lease of property-Allowable as revenue expenditure.

S.37(1): Business expenditure-Trade samples-Assessing Officer to allow relief in event same income gets doubly taxed-Sales return-Not allowable-Expenditure incurred with reference to refurbishment of retail showroom-Allowable as revenue expenditure

S. 37(1) : Business expenditure-Interest on deposits-Allowable as deduction. [Electricity Act, 2003, S.47(4)]

S. 36(1)(vii) : Bad debt-Advance to purchase of property-Mere write-off of advances for purchase of property is not allowable as bad debt. [S. 36(2)]