S.37(1): Business expenditure — Real estate development — Selling and administrative costs — Selling expenses – Revenue expenses after setting up of business is held to be allowable although revenue was not yet earned —Accounting Standard 7 .

S. 37(1) : Business expenditure -Payment to contractors benevolent Fund —Allowable subject to verification -Penalty- Delayed contract – Assessing Officer is directed to verify nature of default . 37(1) Explanation ]

S.37(1): Business expenditure — Labour charges — Road construction business -Some labour contractors not having complete knowledge of contract and looked after by their husbands — Disallowance is not justified .

S. 37(1) : Business expenditure – Salaries to employees- Allowable as deduction – Explanation I is not applicable .

S.37(1) : Business expenditure -Capital or revenue – Leasehold premises — Nature of expenditure to be examined before applying provision relating to ownership of asset [ S.32(1), Expln. 1. ]

S.32: Depreciation — Cost of construction of office block — High Court admitting the appeal of earlier year- Not entitle to depreciation following earlier year .[ S.254(1), 260A ]

S.28(i): Business income – Interest income –Fixed deposit – Rule of consistency – Directed to be assessed as business income .[ S.56 ]

S. 28(i) : Business income – Remission or cessation of trading liability -Introduction of Gold Bars in to business – Nether assessable as business income or cessation of liability [ S.41(1) ]

S. 24 : Income from house property – Deductions – Interest on borrowed capital — Part of self-owned house property let to unmarried son and daughter —No evidence that arrangement not genuine — Loss on account of interest to be adjusted against rental income —Interest on entire property not allowable as rental income part of house property. [ S.24(1)(b) ]

S. 15 : Salaries – Director- Assessable on accrual basis and not on receipt basis — Salary shown in form 26 AS filed by company alone to be taxed — Assessing Officer is directed to examine factual aspect [Companies Act, 1956, Schedule XIII ]