S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission paid to a resident of UAE-Not liable to deduct tax at source-Disallowance is not justified. [S 195]

S. 37(1) : Business expenditure-Provisions made towards ‘periodic overlay expenses’-Not Contingent liability-If the same can be determined with some reasonableness-Allowable as deduction. [S. 80IA, (4)(i), 145]

S. 37(1) : Business expenditure-Prior Period expenses-Tax deducted in the financial year-Settlement on the rent in the year under consideration-Allowable. [S. 145]

S. 37(1) : Business expenditure-Business loss-Capital or revenue-Acquiring company-Investment in subsidiaries-Write off expenditure-Acquiring business-Allowable as revenue expenditure. [S. 28(i)]

S. 37(1) : Business expenditure-Rejection of books of account-Adhoc disallowance on suspicion and conjectures, without rejecting the books of account not justified. [S. 145]

S. 36(1)(iii) : Interest on borrowed capital-Addition made by simply suspecting that the amount of interest paid in excessive-addition cannot sustain as no strong reason given by the AO-Addition is not valid.

S. 36(1)(iii) : Interest on borrowed capital-Question of diversion of funds for non-business purposes would only come into play in case of interest free advance or loan to another company and not in case of investment in another company.

S. 36(1)(iii) : Interest on borrowed capital-Interest paid by assessee partner to a Firm on debit balance, on account of withdrawal for tax payment-Held disallowance not justified as the end use of withdrawn funds from firm is immaterial. [S. 153A]

S. 32 : Depreciation-Solar plant-Put to use-Depreciation is allowable. [S. 32(1)(ii)]

S. 32 : Depreciation-Block of assets-Cylinder-Asset sold-Reduced from Block-Return asset-Added to the asset block. [S. 2(11), 32(1)(ii)]