S. 37(1) : Business expenditure-Capital or revenue-Expenditure related to stock-in-trade to be allowed as revenue expenditure. [S. 2(14)(i)]

S. 37(1) : Business expenditure-Ad hoc basis-Expenses relating to Telephone, Mobile, Vehicle Running and maintenance and depreciation on car-Lump sum disallowance of Rs. 20,000 purely on an ad hoc basis-Not sustainable.

S. 37(1) : Business expenditure-Ad-hoc disallowance of 20 percent of expenses-Not sustainable.

S. 37(1) : Business expenditure-Capital or revenue-Conversion of debentures in to equity shares-Documents and stamp charges on conversion-Capital expenditure-Provision of section 35D is not applicable allowance of expenditure incurred after commencement of business. [S. 35D]

S. 37(1) : Business expenditure-Capital or revenue expenditure-Tenancy agreement-Stamp duty and registration charges-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Capital or revenue expenditure-Expenditure incurred on buy back of shares-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Designing and development expenses-Capital or revenue-Held to be capital expenditure-Directed to allow the depreciation-R&D expenditure-Failure to produce evidence not allowed-Directed the AO to allow depreciation-Reassessment order passed beyond four years-Order was quashed. [S. 32, 35(1)(iv), 147, 148]

S. 37(1) : Business expenditure-Arrears of wages on the basis of 6th Pay Commission-Quantified and paid latter years-Allowable as deduction. [S. 40(a)(ia),145]

S. 37(1) : Business expenditure-Weighted deduction-R&D facility-Allowable as revenue expenditure-Interest on borrowed amount-Matter remanded-Exempt income-While computing disallowance under section 14A only average value of such investment from which yielded exempt income is to be considered. [S. 14A, 35(2AB), 36(1)(iii), R. 8D(2)(iii)]

S. 37(1) : Business expenditure-Ad-hoc disallowance-Not pointed out any specific defect-Not justified in making 20 percent ad-hoc disallowance. [S. 143(3)]