S. 37(1) : Business expenditure-Payment to sub-broker-Statement of third party was not confronted-No disallowance can be made.

S. 37(1) : Business expenditure-Capital or revenue-Market research expenses-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Prior period interest-Omission to book expenditure to closing work-in-progress rectified during year-No disallowance warranted. [S. 145]

S. 37(1) : Business expenditure-Employees’ Stock option plan-Loss on account of stock options-Allowable as deduction-Provision for gratuity-Allowable as deduction-Provision for approved gratuity fund-Allowable as deduction-Advance to employees welfare fund-Interest not disallowable. [S. 36(1)(iii), 40A(7), 43B]

S. 37(1) : Business expenditure-Debit of claim charges-Self made vouchers-No disallowance can be made-Ad hoc disallowance of 10 per cent-Not sustainable [S. 145]

S. 37(1) : Business expenditure-Capital or revenue-Expenses for insurance spare consumption-Revenue expenditure.

S. 32 : Depreciation-Uninterrupted power supply system-Part of computer-Entitled to depreciation at 60 Per Cent-Civil structure for water supply and drainage-Part of plant and machinery-Entitled to depreciation at 15 Per Cent.

S. 28(va) : Business income-Cash or kind-Compensation received for pre closure of contract manufacturing agreement-Capital receipt for loss of business or investment. [S. 4]

S. 11 : Property held for charitable purposes-Registered under Companies Act, 1956-No profit motive-Collection of fees or cess-No requirement that the applicant must be trust-Denial of exemption is held to be not justified. [S. 2(15), 12AA(3) Companies Act, 1956, S. 25, 617]

S. 10 (23C) : Educational institution-No activity carried on other than educational purposes-Exemption cannot be denied-land sold at fair market value-Approval cannot be denied-Direction of the High court was not followed-Order barred by limitation. [S. 10(23C)(vi), 12A, 147, 148]