S.37(1):Business expenditure – Capital or revenue – Renovation of leased office premises is revenue expenses allowable [S.31]

S. 37(1) : Business expenditure – Discount and commission – In absence of full details, entire payment cannot be allowed – cash discount of 1% to keep the buyer in good humor allowable in the interest of justice.

S. 37(1) : Business expenditure – Corporate social responsibility – peripheral development expenses and community development expenses allowable.

S. 37(1) : Business expenditure – Accrued or contingent liability – provision towards expenditure for closure of mines being merely a statutory provision relating to operation of mine, no deduction for proportionate expenditure to the period for which mines operated allowable.

S. 37(1) : Business expenditure – Accrued or contingent liability – provision for post- retirement medical benefits, future encashment leave and long service award based on actuarial valuation is allowable.

S.11: Property held for charitable purposes -Accumulation of income — Allowable at fifteen per cent. on gross receipts

S. 2(22)(e):Deemed dividend- account showing movement of funds both ways between a debtor and a creditor – Held, current account transaction and therefore, S. 2(22)(e) would not apply.

S. 271AAA : Penalty – Search initiated on or after 1st June, 2007 – Levy of penalty at the rate of 10% of the undisclosed income to be imposed only in respect of ‘specified previous year’ – The CIT(A) restricted penalty without examining ‘Specified Previous Year’, matter was set aside to AO for fresh consideration in light of explanation(b) S.271AAA.

S.271AAA : Penalty – Search initiated on or after 1st June, 2007 – Assessee has to specify and substantiate manner of income, has been derived in its statement recorded u/s. 132(4) and not thereafter- Levy of penalty is justified . [ S.132(4) ]

S.271AAA : Penalty – Search initiated on or after 1st June, 2007 – Assessee has to specify and substantiate manner of income, has been derived in its statement recorded u/s. 132(4) and not thereafter- Levy of penalty is justified . [ S.132(4) ]