S. 37(1) : Business expenditure – Capital or revenue -Non compete fee was held to be capital in nature

S. 37(1):Business expenditure — Expenditure in excess of 6 Per cent. of initial issue expenses of asset management company was held to be deductible. Expenditure relating to Information Technology Infrastructure was also held to be allowable . [Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 R. 52 ]

S. 37(1) : Business expenditure -Interest on overdue deposit on overdue deposits is ascertained liability hence allowable as deduction .

S. 37(1) : Business expenditure –Capital or revenue – Membership fee paid to National Stock Exchange for procurement of permanent right in form of licence to carry on trade was held to be capital in nature .

S. 37(1) : Business expenditure – Expenditure on levelling of land was held to be allowable – Presumption applies only to the extent of documents seized [ S.132(4A ]

S. 36(1)(vii) :Bad debt -Amounts written off was held to be allowable as deduction.

S. 36(1)(vii): Bad debt -Amount written in books of account although the entry was back dated was held to be allowable as deduction .

S. 36(1)(iii): Interest on borrowed capital —Interest free fund was used for purchase of land and construction of godown hence interest paid on borrowed capital was held to be allowable .

S. 36(1)(iii) :Interest on borrowed capital -Investment in subsidiaries- Nexus was established -Interest was held to be allowable deduction.

S. 36(1)(iii) :Interest on borrowed capital -Having its own capital at end of financial year relevant assessment year for advancing money for not charging interest , interest payment cannot be disallowed .