S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Fes for technical services-Rendering flight testing services in India-Not in nature of fees for technical services-Not liable to deduct tax at sources-DTAA-India-France. [S. (9)(1)(vii), 195, Art. 13]

S. 37(1) : Business expenditure-Cash expenditure-Diesel, petrol oil and freight-Disallowance of one per cent of expenditure on ad-hoc basis-Disallowance was directed to be deleted.

S. 37(1) : Business expenditure-Capital or revenue-The cost of land acquisition and electrification charges the cost of land acquisition and electrification charges-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Referral fees to doctors-Violation of regulation 6.8.1(d) of Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002-Not allowable as a deduction.

S. 37(1) : Business expenditure-Subscription of lease line on one-time payment for three years-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Interest paid on delayed payment of TDS-Compensatory in nature-Allowable as deduction. [S. 201(IA)]

S. 37(1) : Business expenditure-Foreign exchange difference-As on the date of the balance sheet-Allowable as a deduction-Provision for the stock-Ad-hoc basis-Contingent-Not allowable as a deduction-System of accounting-Followed continuously-Presumed to be correct. [S. 145]

S. 37(1) : Business expenditure-Setting up of business-Business expenditure claimed towards employees cost, depreciation etc. allowable as a deduction.

S. 36(1)(vii) : Bad debt-Amounts are written off-AO cannot disallow bad debts on the ground that the sum was prematurely written off. [S. 36(2)(i)]

S. 35AD : Deduction in respect of expenditure on specified business-Hotels-Approval was delayed-The matter was to be remanded back to Assessing Officer with the direction that if the delay was established, the assessee was to be allowed deduction.