S.37(1) : Business expenditure — Capital or revenue Computer software expenses — Legal expenses incurred in connection with sale of capital assets – Held to be revenue expenditure .

S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Co-Operative Bank — Deduction for 10 Per Cent. of aggregate advances of Rural Branches – Not allowable .

S.36(1)(vii): Bad Debts —Lottery and financing business- Advance of money- Amounts written off in accounts — Held to be allowable . [ S.36 (1), 36(2) ]

S.36(1)(vii) ; Bad debts- Part of current assets – Allowable as bad debt .

S. 36(1)(va): Any sum received from employees – Employees’ Contribution to Provident Fund and Employees’ State Insurance — Delay in payment- Tribunal remanding the issue before Assessing Officer – Held to be erroneous .[S. 2(24)(X), 36(1)(Va) , Employees’ Provident Funds And Miscellaneous Provisions Act, 1952, S. 38. ]

S. 36(1)(iii): Interest on borrowed capital — Amount used to assist sister concern — Interest not deductible.

S.32: Depreciation — Rate of depreciation —Hiring out construction Equipment —Crane depreciation allowable at 30% – It cannot be reduced to 15% – Res Judicata —Not strictly applicable but consistency essential.
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S.32: Depreciation —Uninterrupted power supply system for Computers —Entitled to depreciation at 60 Per Cent.

S. 14A : Disallowance of expenditure – Exempt income – Investment from borrowed capital – Presumption that advances made out of interest free funds- No facts pleaded for apportionment – Deletion of addition is held to be justified [S.36(1)(iii), R. 8D ]

S. 14A : Disallowance of expenditure – Exempt income – No expenditure was incurred – Disallowances cannot be made . [ R.8D ]