S. 40(a)(ia) : Amounts not deductible-Deduction at source-Services rendered by parties-Bills were raised in next year-Payees were not identifiable-Voluntarily disallowed of expenses would not automatically enable Assessing Officer to treat it as assessee in default1Cannot be treated as assessee in default.[S. 201 (1), 201(IA)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Shortfall in deduction of tax at source —Disallowance is deleted-Proper course of action was proceeding under section 201[S. 201]

S. 37(1) : Business expenditure-Contribution to Gratuity Fund 1Payments to Life Insurance Corporation of India towards Group Gratuity Scheme and Employees receiving payments from Life Insurance Corporation for their Gratuity as and when occasion arose 1Payments from Gratuity Fund to employee during his lifetime treated as salary 1Application for approval of Gratuity Fund made in 2002-Approval granted by order dated 4-10-2023 with effect from 3-1-2023 —Allowable as deduction. [S.36(1)(v), Form No 3CD]

S. 37(1) : Business expenditure-Business loss 1Capital or revenue —Writing off amount due to non-recognition of project —Directed the Assessing Officer to examine the disallowance-Dispute-Prior period expenditure paid this year-Not allowable as deduction. [S. 28(i), 145]

S.37(1): Business expenditure-Establishment, conveyance, guest house, maintenance, mobile and internet, travelling, show room and staff welfare 1No defects in books of account – Ad—hoc disallowance is deleted. [S. 145]

S.37(1): Business expenditure-Compensatory afforestation 1Capital or revenue 1No enduring benefit from incurrence Expenditure is allowable as revenue expenditure. [S. 145]

S.37(1): Business expenditure – Capital or revenue-Preliminary drilling expenses incurred on account of fees, studies and other consultancy charges —Allowable as revenue expenditure – Office renovation-Dismantling wells, sand filling, Excavation, cementing, plastering, Etc. and sundry expenses 1Revenue expenditure 1Purchase of furniture and fixtures for new office 1Capital expenses-Depreciation is allowable-Expenditure on bifurcation of oil tank, construction of office shed, construction of slab and pipe culvert, construction of platform for tankers and foundation and towards demurrage charges for water injection plant 1Expenses primarily to bring into existence capital asset 1Not revenue-Entitled to depreciation-Expenditure on repairs and maintenance of leased premises 1Allowable as revenue expenditure. [S. 32]

S. 37(1) : Business expenditure 1Purchases related to infrastructure project 1Filed taxpayer Identification number of vendors (TAN)-Failed to file Permanent Account Number and income-tax returns copies of vendors – Failure to deduct tax at source – Purchases cannot be treated as not genuine-Inadequate Investigation by Assessing Officer 1Expenses are allowable-Valuation of property 1Accounts 1Maintaining regular books of account and transactions recorded in books of account – Addition cannot be made on the basis of Valuation Officer’s report – Loose sheet – Matter is remanded. [S. 69C, 133(6), 145]

S. 36(1)(iii) :Interest on borrowed capital-Perpetual non-convertible debentures —Debentures as appropriation out of profits in financial statements 1Debentures repaid in exercise of call option 1Interest allowable as deduction.

S. 35 : Expenditure on scientific research-Weighted deduction 1Department of Scientific and Industrial Research not certified part of expenses and did not furnish reason – Assessing Officer is directed to examine issue a fresh thereafter.[S.35(2AB), R. 6(7A)]