S. 37(1) : Business expenditure-Employer’s benefit, repairs and maintenance, Other expenses, commission etc-CIT(A) restricting benefits of employees and legal and professional fees by 5%-Disallowance of 10% repairs and commission and discount-Disallowance reasonable-Deletion of disallowance on manufacturing expenses-Order of CIT(A) is affirmed.

S. 37(1) : Business expenditure-Liquidated damages for delay-Liability supported by MOU-Allowable-Interest on loan taken by party paid by assessee-Interest not allowable.

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Mere provision of bad and doubtful debts when the same is made on an ad hoc basis will not constitute a write-off to claim deduction.

S. 36(1)(vii) :Bad debt-Unit sold as slump sale-Past advances written off relating to sold unit-Not allowable as deduction.

S. 36(1)(iii) : Interest on borrowed capital-Real estate developer-Interest paid on overdraft-Closing stock and working progress-Disallowance was deleted-Loan to subsidiaries-Recovered the interest paid on overdraft-Deletion of interest is affirmed.

S. 36(1)(iii) :Interest on borrowed capital-Sufficient funds-Investment in shares-Disallowance is not justified-Matter remanded.

S. 36(1)(iii) : Interest on borrowed capital-Amount advanced to sister concern-Interest recovered-Disallowance of interest is not justified.

S. 36(1)(iii) : Interest on borrowed capital-Interest-free funds far in excess of loan advanced-Disallowance of interest not warranted.

S. 36(1)(iii): Interest on borrowed capital-Advancing borrowed money to sister concern for business purposes without charging interest-Interest expenses allowable as deduction. [S. 37(1)]

S. 36(1)(iii) : Interest on borrowed capital-Bad Debt-Advance for purchase of material for stock-in-trade-Amount written off-Allowable as deduction. [S. 28 (i)]