S. 37(1) : Business expenditure-Employee Stock Option (ESOP)-Allowable as business expenditure.

S. 37(1) : Business expenditure-Bogus purchase-Rough diamonds-Estimate addition-Estimated the profit @ 3% of the polished diamonds and @5% of the rough diamonds. [S. 143(3)]

S. 37(1): Business expenditure-Capital or revenue-ROC filing fees paid for increase in share capital-Not allowable as revenue expenditure.

S. 37(1) : Business expenditure-Prior period expense-Method of accounting-Not proved with necessary evidence-Commission-Lack of evidence-Disallowance is affirmed. [S. 145]

S. 37(1) : Business expenditure-Ad-hoc basis-Books of account not rejected-Disallowance of expenses and purchase differences-Revenue stamps not affixed-Books of accounts audited-Purchase differences reconciled with suppliers-Ad hoc disallowance not sustainable.[S. 133(6), 145]

S. 36(1)(iii) :Interest on borrowed capital-Work-in-progress-Out of own funds and borrowed funds-Disallowance is deleted.

S. 36(1)(iii) : Interest on borrowed capital-Consistent methodology Interest-free advance given to an individual for the purpose of business was held to be genuine and allowable.

S. 36(1)(ii):Bonus or commission-Directors had declared salary and bonus-Entitled to claim deduction in respect of payment of bonus to its directors.

S. 32 : Depreciation-Rate of depreciation-Computer software-Depreciation allowable at 60 Per Cent.

S. 32: Depreciation-Car registered in name of director-Funds utilized of the company-Depreciation is allowable to the company.