S. 37(1) : Business expenditure–Capital or revenue-Software-License fee connectivity charges and coordination charges is allowable as revenue expenditure

S. 36(1)(va) : Any sum received from employees – Provident fund and employees State Insurance -Allowable as deduction though the amount was deposited after the due date but before the due date of filing of return. [S. 43B, 139(1)]

S. 36(1)(iii) : Interest on borrowed capital-Interest paid on loan borrowed for renovation and modernization in assessee’s factory premises-Allowable as deduction.

S 32 : Depreciation–Paper Brand-Trade marks -Intangible assets -Eligible depreciation.[S. 32 (1)(ii)]

S. 28(i) : Business loss-Write off of advances made for running and development of business is held to be allowable as deduction. [S. 37(1)]

S. 14A : Disallowance of expenditure-Exempt income–Investments out of own funds and free reserves not liable for disallowance- 2% of dividend income was disallowed towards administrative expenses. [R. 8D]

S. 4 : Charge of income-tax – Carbon credit -Capital or revenue -Additional ground -Receipt from sale of carbon credit is capital receipt-Not taxable as income – Additional ground was admitted and remanded the matter for verification. [S. 2(24), 80IA(4), 115BBG, 254(1)]

S. 276CC : Offences and prosecutions–Companies–Failure to furnish return would not come in way of criminal prosecution-Sanction–Commissioner empowered to sou moto initiate penalty even if assessing authority is Additional Commissioner-Return of income–Failure to furnish–Omission on part of the AO to impose penalty by itself does not mean default is not willful-Return of Income–Primary responsibility of furnishing return is of Managing Director–Directors also equally responsible for furnishing return. [S.139, 140, 271F, 278B, 279]

S. 271(1)(c) : Penalty–Concealment–Writing off capital work in progress- Penalty not sustainable on disallowance of assessee’s claim of loss–Legislature does not intend to penalize every person whose claim is disallowed.

S. 271(1)(c) : Penalty–Concealment–Not mentioning the specific charge -Ground mentioned in show cause notice would not satisfy requirement of law for levying penalty as charges levied in the notice were not specific-Deletion of penalty is held to be valid. [S. 132, 139, 153A]