S. 36(1)(ii) : Bonus or commission-Salary-Director-Shareholder Directors were given commission for promoting and increasing sale-Part of salary allowable as deduction. [S. 15]

S. 35 : Scientific research-Facility is recognised by prescribed authority, in-house R & D-role of-Assessing Officer is to allow expenditure incurred on in-house R&D facility as weighted deduction-in computing 90 days limitation period as provided under Rule 34(5) for pronouncing order, period of Covid-19 pandemic lockdown was to be excluded. [S.35(2AB, S.255]

S. 28(iv) : Business income-Value of any benefit or perquisites-Converted in to money or not-Premature payment of deferred sales tax at Net Present Value of certain amount against total liability-capital receipt-Not assessable as business income.

S. 28(i) : Business loss-Speculation business-Contract cancellation charges-Part and parcel of regular export business-Loss cannot be disallowed as speculative loss. [S. 73]

S. 28(i) : Business loss-Forfeiture of advance-Allowable as business loss having direct nexus with operation of business and is incidental to business. [S. 36(1)(vii), 36(2)]

S. 28(i) : Business loss-Foreign exchange fluctuation loss-Matter remanded-Bad debt-Advances written off was not allowable as bad debt, same would not ipso facto jeopardize assessee’s claim for deduction of same as business loss-Matter remanded. [S.36(1)(vii), 36(2), 37(1)]

S. 28(i) : Business loss-Commodity derivatives-Suspension of operations by NSEL-Amounts due from brokers-Allowable as business loss. [S. 43(5)(e)]

S. 28(i) : Business income-Interest income from fixed deposit (FD) receipts with bank-Obtaining letter of credit for its purchases-Assessable as business income. [S. 10AA]

S. 28(i) : Business income-Capital gains-Bad debt-There is no embargo either on Assessing Officer or on assessee to show income or loss under head business or profession in subsequent year merely because it was shown in earlier assessment year-Income has to be assessed under correct head-Allowability of bad debt or business loss has to be determined in the year in which it is to be allowed-Bad debt is allowable in the year it is written off in the books of account. [S. 36(1)(viii), 36(2), 45, 143(3)]

S. 28(i) : Business income-Excess wastage of raw material-Cannot be assessed as suppressed/unaccounted production.