S. 40(b)(ii) : Amounts not deductible–Partner–Remuneration-Partnership Deed mentioning maximum amount payable but payment to individual partner left undecided-Payments to be decided mutually between them- No disallowance made in preceding years-Principle of consistency applied. [S. 40(b)(v)]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident– Fees for Technical Services–Commission agents providing services outside India-Commission payments to non-residents not be treated as income deemed to accrue or arise in India-No disallowance could be made.

S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident– Royalty-Payment for purchase of copyrighted software-Not royalty- ‘Royalty’ originally defined in double taxation avoidance agreement not amended-Assessee is not liable to deduct tax for payments made for purchase of off-the-shelf software. [S. 9(1)(vi), 195]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident– Interest – Royalty-Fes for technical services-DTAA-India-Switzerland. [S.9(1)(vi), 195, Art.14]

S. 37(1) : Business Expenditure–Advertisement expenses-Assessee not confronted with fact that notices to parties to whom expenses claimed to have been paid returned unserved-Matter Remanded–AO to decide afresh after confronting assessee and after hearing assessee.

S. 37(i) : Business Expenditure-Provisions for gratuity and leave encashment made with reasonable certainty on basis of independent actuarial valuation same is allowable. [S. 145]

S. 37(1) : Business expenditure-Not commenced business operations-lease rentals is allowed to be set off against lease rentals paid as well as excess expenditure allowable for capitalization.

S. 37(1) : Business expenditure-Accrual of liability-Payment of countervailing duty on imported goods-Claim to refund not a ground for treating liability as not accrued-Liability is held to be allowable as deduction. [S. 145]

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.