S. 37(1) : Business expenditure-Sales promotion-Expenses incurred in various locations-Burden is on assessee to prove that the expenses incurred was wholly and exclusively for the purpose of business-Matter remanded.

S. 37(1) : Business expenditure-ad-hoc addition-Held to be not sustainable in eyes of law.

S. 37(1) : Business expenditure-Penalties-Delay in compliance procedure-No disallowance can be made.

S. 37(1) : Business expenditure-Brokerage paid to broker who was not registered with stock exchange-Service rendered not proved-Payment was made against violation of SEBI rules-Not allowable as deduction.

S. 37(1) : Business expenditure-Purchase of mobile phone-Allowable as revenue expenditure. [S. 32]

S. 37(1) : Business expenditure-Prior period expenditure-CENVAT credit on passenger service fee (PSF)/user development fee (UDF) and advertisement fee was not actually received offered as income-Entitle to deduction in subsequent year by reversal of entries-Service tax on chartered flight service tax on chartered flight-Interest payment for delayed payment of service tax-Allowable as deduction-Legal expenses-Aborted project-Allowable as deduction. [S. 43B]

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-One time settlement (OTS) scheme-Provision for bad and doubtful debt was higher than amount of such bad debt claimed by it-First set off against such credit balance in balance.

S. 36(1)(iii) : Interest on borrowed capital-Advance to sister concern-Interest free funds more than the advance to sister concern-No disallowances can be made.

S. 32 : Depreciation-Stock exchange card-demutualized/corporatized into shares in earlier year-Depreciation is held to be allowable.

S. 32 : Depreciation-Vehicles-Registration was in the name of individual directors-Depreciation cannot be denied.