S. 40(a)(ia) : Amounts not deductible-Deduction at source–Hiring charges for use of cranes–Payment being not contractual – Not liable to deduct tax at source. [S. 194C]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contractor-PAN of transporters at time of payment of freight was collected–Disallowance cannot be made. [S. 194C(6), 194C(7)]

S. 37(1) : Business expenditure-Prior period expenses–Method of accounting -Bills received during the year–Liability crystallised during the year–Allowable as deduction. [S. 145]

S. 37(1) : Business expenditure–Interest-Commercial expediency –Unrelated parties-Payment was made as part of contract– Disallowances cannot be made. [S. 36(1)(iii)]

S. 37(1) : Business expenditure-Indian subsidiary-Head office- Payment to holding company for providing services-Matter remanded.

S. 36(1)(viii) : Eligible business-Special reserve–Development of housing-Long term finance-Construction/purchase of residential houses- Not entitle to deduction in respect of income from loans given for individual residential houses.

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts- Schedule bank-Co-operative bank- Eligible for deduction of provision for doubtful debt and loss assets to extent of 7.5 per cent of business income (computed before making any deduction under this clause and Chapter VIA). [S. 37(1)]

S. 36(1)(vii) : Bad debt-Amounts written off of bad debts-Entitle to deduction. [S. 36(2)]

S. 36(1)(iii) : Interest on borrowed capital–Interest free advances-Notional disallowance-Burden is on revenue to prove that borrowed capital has been used for interest free advance or loan-No disallowance can be made.

S. 32 : Depreciation-Co-operative bank-Securities held as ‘Available for sale’ which was computed and claimed consistently by assessee every year in its profit and loss account- Held to be allowable.