S. 37(1) : Business expenditure-Self made vouchers-Ad hoc disallowance is not justified. [S. 145]

S. 37(1) : Business expenditure-CSR expenditure-Disallowance in lieu of Explanation 2 to Section 37(1)-No retrospective effect of Explanation 2-CSR Expenditure allowed.

S. 36(1)(va) : Any sum received from employees-Employees contribution to PF and ESI paid after the due date as per the relevant statutes but before filing of return of income under section 139(1) of the Act is not be disallowed.[S.43B, 139(1)]

S. 36(1)(iii) : Interest on borrowed capital-Interest paid to relatives and non-relatives-Difference between rate of interest charged by private money-lender and that charged by bank bound to exist-Assessee paying interest after deducting tax at source-AO failed to show that assessee utilised loan for purpose other than business-Interest expenses is held to be allowable.

S. 32 : Depreciation-On runway, isolation parking bay and roads, culverts and drains as buildings-Matter remanded for verification.

S. 28(i) : Business Loss-Non production of documentary evidence for hiring of trucks-loss on vehicle is not allowed.

S. 28 (i) : Business income-Low production as compared to earlier year, variation in yield ratio meager and in some cases less than one per cent-Addition is not sustainable. [S. 145]

S. 14A : Disallowance of expenditure-Exempt income-No exempt income earned during the year–Satisfaction is not recorded-No disallowance can be made–Delay of 133 days in filing of appeal is condoned. [S. 115JB, 253(3), R. 8D]

S. 10AA : Special economic zones- Determination of profits where profits disclosed by assessee higher than ordinary profits—No arrangement between assessee and comparable companies to enable assessee to earn super normal profits—Concept of applying profit level indicators applied in determination of arm’s length price of international transactions not applicable for determination of profits for computation of exemption—AO is directed to allow entire deduction. [S.10A(7), 10AA(9), 80IA(10), 92CA]

S. 10A : Free trade zone–Export sale proceeds not received in India in foreign exchange within time specified-Assessee seeking extension of time-No extension of time allowed after period of six months from end of year and application not rejected—Amounts includible in export turnover though received belatedly-Disallowance of payments for failure to deduct tax at source enhancing taxable income of assessee—Entitled to exemption on enhanced income. [S. 40(a)(ia)]