S. 37(1) : Business expenditure-Accrued or Contingent Liability-Provision for warranty-Ad-hoc basis-Not deductible.

S. 37(1) : Business expenditure-Capital or revenue-Expenditure on rented premises-Not allowable as revenue expenditure. [S. 32]

S. 37(1) : Business expenditure-Commission expenditure-Mere inability to furnish the confirmation letters from the parties commission payment cannot be disallowed.

S. 37(1) : Business expenditure-Education cess on secondary and higher education cess-Not allowable as deduction. [S. 40(a)(ii)]

S. 37(1) : Business expenditure-Expenditure on sponsoring sports-Allowable as revenue expenditure.

S.37(1): Business expenditure-Foreign travel-Disallowance of Rs. 2.5 lakh confirmed.

S. 37(1) : Business expenditure-Redeemable gift vouchers-No evidence doubting genuineness of the expenditure-Disallowance is not justified.

S. 37(1) : Business expenditure-Aircraft Lease Rental-Lessor eligible to claim depreciation-Lessee eligible to claim deduction on rental payments of the aircrafts-Accounting standard created distinction between finance lease and operating lease-Not applicable-Allowed in earlier years-Principle of consistency followed.[S. 32, 145]

S. 37(1) : Business expenditure-Construction of hospital and school auditorium for benefits of employees-expense made wholly for the purpose of business-Allowable as deduction

S. 37(1) : Business expenditure-Employee’s stock option plan-Option to purchase shares after completion of vesting period at a lesser price than the market value-Ascertainable liability-Allowable as deduction [S. 145]