S. 37(1) : Business expenditure-Club membership fee-One-time entry fee paid by individual assessee for club membership could not be allowed as business expenditure-Adjustment is affirmed-Only corporate membership one time membership fee is allowable. [S.143(1)(a)]

S. 37(1) : Business expenditure-Business of civil construction- Labour charges-Failure to support evidence-Restricted to 50 per cent of labour expenses.

S. 37(1) : Business expenditure-Expenditures towards road and bridge construction Commercial expediency-Allowable as deduction allowable as deduction though no income shown during the year. [S. 145]

S. 37(1) : Business expenditure-Community development expenses-Allowable as business expenditure.

S. 37(1) : Business expenditure-Gifts-Customers on occasion of new year and festivals-Allowable as business expenditure-Gifts given to directors and to government employees would not be allowed as expenses.

S. 37(1) : Business expenditure-Shortfall in PF- its-statutory-liability towards Employees Provident Funds Act, payment made towards maintenance of statutory interest rate was an allowable expenditure. [Provident Fund Rules, 17]

S. 37(1) : Business expenditure-Diesel & petrol expenses-Ad-hoc disallowance-No fining that expenses are bogus-Addition is deleted.

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Disallowance could not be made merely on ground that certain provision made by assessee were not in nature of bad and doubtful debts.

S. 36(1)(va) : Any sum received from employees-Sunday or gazeted holiday-Payment was made on next working day-Allowed as deduction. [S.43B, 139(1)]

S. 32 : Depreciation-Plant and machinery-Solar Power Plant-Captive use of factory-Installed in office premises-Office building is part of factory and electricity so generated was used for factory-Matter remanded to Assessing Officer for verification.