S. 37(1) : Business expenditure-Huge expenses of purchases, job-work payment, petrol and transport expenses Compared to preceding year-Failure to discharge the onus-Addition is affirmed.

S.37(1): Business expenditure-Capital or revenue-Stock brokerage-Expenditure on broadband, lease rent, software customisation, facility management, repair and maintenance-Allowable as revenue expenditure. [S. 32, 40(a)(ia)]

S. 36(1)(va): Any sum received from employees-Delayed payment of employees contribution to Employees’ State Insurance Corporation-Disallowance is affirmed.[S.43B]

S. 36(1)(iii) : Interest on borrowed capital-Sufficient interest free funds-Disallowance is deleted.

S. 36(1)(iii) :Interest on borrowed capital-Higher rate of interest 16% to bank on loans-Rate charged to subsidiaries lesser rate of 6%-Disallowance is deleted.

S. 36(1)(iii) : Interest on borrowed capital-Order of CIT(A) is affirmed.

S. 35 : Expenditure on scientific research-In-house scientific research and development-Weighted deduction-Expenditure attributable to income earned from contract research is also entitled to weighted deduction-Matter remanded. [S.35(2AB)]

S. 35 : Expenditure on scientific research-Department of Scientific and Industrial research approved only part of expenditure claimed-Prior to 1-4-2016 there is no requirement of quantification of eligible expenditure incurred on in-house research and development facility has to be approved by prescribed authority-Entitled to 200 Per Cent. of actual expenditure incurred on Scientific Research.[S.35(2AB]

S. 35 : Expenditure on scientific research-Purchase of capital equipment for research facility-Clinical trial expenditure allowed by Tribunal in earlier years which is up held by High Court-Order of CIT(A) deleting the addition is affirmed-Central Board Of Direct Taxes Circular No. 14(Xl-35), Dated 11-4-1955. [S.35(2AB)]

S.14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed exempt income-Addition to book profit is deleted. [S.115JB, R.8D]