S. 37(1): Business expenditure-Travel and conveyance expenses-Ad-hoc disallowance of 20%-CIT(A) was justified in deleting the ad-hoc disallowances.

S. 36(1)(vii): Bad debt-Amount of unreconciled debtors written off-Allowable as bad debt. [S. 36(2)]

S. 32: Depreciation-Goodwill-Amalgamation-Purchase method-AS 14-Provisions of sixth proviso to s. 32(1), Expln. 7 to s. 43(1) and Expln. 2(b) to s. 43(6) has no applicability to the facts of the case-Amendment made vide Finance Act, 2021, in relation to the allowance of depreciation on goodwill is effective from 1st April, 2021 and is applicable to asst. yr. 2021-22 and subsequent assessment years-Entitled to claim depreciation on goodwill arising on account of amalgamation-Customer relationship or distribution network-existing in the books of the amalgamating company-Fair value of these assets was specifically computed by the independent valuer vide his valuation report-The AO is directed to grant depreciation on “customer relationship” and “distribution network” arising on account of amalgamation. [S. 32(1), 43(1)]

S. 28(i) : Business loss-Fixed deposits held by the assessee-bank with another bank written off—Allowable as business loss.

S. 28(i): Business loss-Overstated bank balance written off— Allowable as business loss.

S. 17(2): Salary-Perquisite-Personal expenses of director-Paid through the credit card of the company-Disallowed in the assessment of company-Can not be taxed again in hands of assessee-director as perquisite under section 2(24)(iv).[S. 2(24)iv), 28(iv), 37(1)]

S. 270A: Penalty for under-reporting and misreporting of income-Vagueness of notice was not accepted-Partly allowed the relief on quantum addition-Assessing Officer was directed to modify the order after giving effect to the order. [S. 43B, 274]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Excess stock-Survey-Additional income was offered-Specific queries raised by Assessing Officer and had explained that the only source of income of assessee was from business-Revision order of CIT for not invoking provision of section 115 BBE was quashed and set aside.[S. 28(i), 69, 115BBE, 133A, 143(3)]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Purchase of immovable property-Below circle rate-Sale consideration and DVO-determined FMV for assessee’s share was within permissible 10 per cent variation-CBDT Circular No. 8/2018-Revision by PCIT treating variation as taxable and Circular as prospective was an unsustainable, change of opinion not supported by law-Revision order was quashed. [S.50C, 56(2)(viib), 143(3), 147]