S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Genuineness of transaction was in doubt-Order of High Court is affirmed-SLP of assessee is dismissed. [R.6DD(j), Art. 136]

S. 37(1) : Business expenditure-Provision for salary and wages-Justice Palekar Award-Ex-gratia bonus-Allowable as expenditure. [S. 36(1)(ii), 260A, Payment of Bonus Act, 1965]

S. 37(1) : Business expenditure-Payment to Haryana State Agricultural Board-Statutory functioning-Application of income-Allowable as deduction-Penalty order is quashed as the quantum disallowance is deleted. [S.260A, 271(1(c)]

S. 37(1) : Business expenditure-Cpmpensation-340 days delay-SLP is dismissed.[Art. 136]

S. 37(1) : Business expenditure-Diversion by overriding title-Sharing of profit-The AO has to take into account the manner in which the business works, the modalities and manner in which SAP/additional purchase price/final price are decided and determine what amount forms part of the profit-Whatever is the profit component is sharing of profit/distribution of profit and the rest is deductible as expenditure-question of law is answered partly in favour of the revenue and partly in favour of the assessee-Matter is remitted to the AO to undertake the exercise as stated in the judgement after giving an opportunity to the respective assesses-Review petition is dismissed [S.40A(2),Sugarcane (Control) Order 1966 clauses, 3, 5A]

S. 37(1) : Business expenditure-Interest-Real estate business-Not commenced the business-Investing in shares of subsidiary-Not allowable as deduction-SLP of assessee is dismissed.[Art.136]

S. 36(1)(va) : Any sum received from employees-Late deposit of employee’s contribution to PF and ESI-Disallowance is justified-Assessment order under section 143(1)(a) would make no difference.[S.143(1)(a), 260A]

S. 36(1)(iii) : Interest on borrowed capital-Loan to subsidiary-Subsidiary was incurring losses-Loan from banks at rate 14 to 16 percent-Advance to subsidiary at rate of 6 percent-No disallowance was made in earlier years-Rule of consistency-Order of Tribunal is affirmed-No substantial question of law.[S.260A]

S. 32 : Depreciation-Amalgamtion-Intangible assets-Goodwill is valuable asset-Entitle to depreciation-SLP of Revenue is dismissed.[S. 32(1), Art. 136]

S. 14A : Disallowance of expenditure-Exempt income-Borrowed capitals-Investing in shares to earn income from dividend-Expenditure incurred on interest paid on borrowed funds is not allowable as deduction. [S.10(33), 36(1)(iii), 260A]