S .37(1) : Business expenditure-Short fall in inventory written off-Allowable as deduction-Purchase of tools allowable as revenue expenditure-Provision for warranty-Allowable as deduction-Lability for erection and commissioning placed upon shoulders of assessee-Provision at rate of one per cent. to three per cent. determined on basis of past experience-Matter remanded to the Assessing Officer. [S. 28(1)]

S. 37(1) : Business expenditure-Prior period expenses-Payments were made when actual bills received after crystallisation of expenditure-Allowable as deduction. [S. 145]

S. 37(1) : Business expenditure-Additional payment to avoid litigation-Deduction not claimed-Disallowance is not warranted.

S. 37(1) : Business expenditure-Diversion by overriding title-Matter remanded. [S. 40A(2)]

S. 37(1) : Business expenditure-Ceremony expenses-Disallowance at 30 Per Cent is held to be justified.

S. 37(1) : Business expenditure-Travelling expenses-Personal use-Disallowance of 20 Per Cent. for personal use is held to be justified.

S. 37(1) : Business expenditure-Payment to Mosque for free lunch to Assessee’s employees-Mosque not under control of assessee-Free Lunch not provided exclusively to Labourers of assessee-Not allowable as deduction.

S. 37(1) : Business expenditure-Subscription paid to different committees and associations in local vicinity-Allowable as deduction-Excess amount paid as written off-Matter remanded.

S. 37(1) : Business expenditure-Interest on debentures or compulsorily convertible debentures-Added to work in progress-Builder-Excess interest is required to be added back proportionately to total income as and when corresponding amount of work-in-progress reversed on sale of Flats/Plots [S. 145]

S. 37(1) : Business expenditure-Accrued or Contingent Liability-Provision for warranty-Ad-hoc basis-Not deductible.