S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Rent paid for residential accommodation excessive in comparison to market rate-Assessing officer’s reliance on material obtained from internet unreliable-Deletion of addition by commissioner (appeals) upheld.

S. 40(a)(ia): Amounts not deductible-Deduction at source-Disallowance of business expenditure-Transport-Revision of order by the tribunal-Held amendment was done to remove hardship caused to the assessee-Amendment not clarificatory in nature.

S. 40(a)(ii): Amounts not deductible-Rates or tax-Education cess-Not allowable.

S. 37(1): Business expenditure: Genuineness of job work charge-Produced formidable evidences to identify contractors as well as factum of incurring job work expenses, said expenses deserved to be allowed.[S.131(1)(d), 133(6), Order XVI, rule 19 of CPC, 1908]

S. 37(1) : Business expenditure-Assessee, following a consistent method of accounting, has offered EIS to tax on proportionate basis as and when they have accrued over tenure of loan and same has been accepted by revenue-in accordance with RBI norms as well as AS-9-Therefore, keeping in view principle of prudence as well as rule of consistency, no fault could be found with accounting methodology adopted by assessee to recognize revenue under securitization transactions. [S. 145]

S.37(1): Business expenditure Prior period expenditure-Expenditure crystallising only during relevant previous year when bills were received-Allowable as deduction-Provisions for expenses at end of previous year-Actually paid after end of previous year-Allowable as deduction-Contributions to provident Funds-Provision for gratuity-Government Provident Fund Established as Per Provident Funds Act, 1925-Allowable as deduction. [S. 36(1)(va) 40A(7) 145, Constitution, Art.12]

S.37(1): Business expenditure-Insurance business-Provisions on standard assets-Allowable as deduction.[S.44]

S.37(1): Business expenditure-Donation-Contribution-Ministry of Rural Development Instructing Public Sector Banks to lead Institutions in managing and running institutes-Allowable as deduction-Cenvat Credit–Unutilised Cenvat credit charged to profit and loss account-Not allowable as deduction-Bad debt written off-Matter remanded. [S. 36(1)(vii) 80G, Cenvat Credit Rules, 2004.]

S. 37(1): Business expenditure-Capital or revenue training and licensing of Pilots-Entries in books not determinative of nature of expenditure-Allowable as revenue expenditure in year of incurrence.[S. 145]

S. 37(1): Business expenditure-Foreign currency convertible bonds-Not amortising expenses in books-Revenue nature allowable as deduction-Premium payable on redemption of bonds-Allowable as deduction.