S.37(1): Business expenditure-New line of business-Capital or revenue-Furniture space, home improvement, kitchen space, bathroom space and acquisition of paints manufacturing company in Ethiopia being completely a new line of business and not an extension of existing business of assessee, is capital in nature.

S. 145 : Method of accounting – Project completion method – The Assessing Officer is not justified in rejecting the project completion method and estimating the income on percentage completion method- No addition can be made merely on the basis of sales shown in the GST return and Income tax return when the assessee is able to reconcile the difference . [ S. 4 ]

S. 270A:Penalty for under -reporting and misreporting of income – Penalty notice was only regarding underreporting of income- Penalty levied u for misreporting of income and under reporting – Not specifying the specific charge – Salary received is shown in the return – Penalty of Rs 44, 90,048 levied under section 270A(8) of the Act is deleted . [ S.139(9), 192 , 270A(8),270A(9)(e), 274 , Form No. 26AS ]

S.37(1): Business expenditure-Product development expenses-Allowable as revenue expenditure-Liquidated damages-As part of contractual obligation with its customers for delayed supply of goods or delayed completion of projects-Allowable as deduction-Employees’ contribution to PF and ESI would not be allowable in case of assessee-employer if it was remitted beyond due date prescribed under respective Acts.[S. 36(1)(va)]

S.37(1): Business expenditure-Business promotion expenses-Gifts distributed at time of annual general meeting to milk producers-Allowable as deduction-Limited return on share capital-1% of share capital-Not allowable as deduction. [Companies Act, 1956, S.581A, 581 E]

S. 36(1)(iii) :Interest on borrowed capital-Loan raised from bank for repayment of capital-Allowable as deduction.

S. 35AD : Deduction in respect of expenditure on specified business-Hospital-Survey-Revised return-Deduction claimed in revised return is allowable. [S.35AD(2), 133A, 139(5)]

S.35A : Acquisition-Patent rights-Copy rights-Trade mark-Merger-Eligible to claim deduction.

S. 35 : Expenditure on scientific research-Approval was pending-Issue was restored to Assessing Officer.[S.35(2AB), Form No 3CM]

S. 32 : Depreciation-Carry forward of depreciation-New plant and machinery less than 180 days-Entire additional depreciation cannot be allowed-Balance unclaimed amount can be claimed in subsequent assessment year.