S. 37(1) : Business expenditure-Capital or revenue-Security deposit for lease premises-Foregone in dispute with lessor-Capital expenditure.

S. 37(1): Business expenditure-Inspection and survey charges-, Disallowance of inspection and survey charges to 25 per cent was justified. Order of Tribunal is affirmed. [S. 260A]

S. 37(1) : Business expenditure- capital or revenue-Interest paid on securities held as stock in trade-Allowable as revenue expenditure. [S. 28(i)]

S. 37(1) : Business expenditure-Commission-Residence – Company – Control And Management -Assessee-Companies Registered In Sikkim-Burden not discharged-Round tripping of funds-Liable to tax in India. [S. 2(35), 5, 6(3)(ii), 131, 142(1), 143(2), 148, 234A, 282]

S. 36(1)(iii) : Interest on borrowed capital-Interest free advances to partners-Commercial Expendiency-Assessee was not required to demonstrate commercial expediency in each year-Order of Tribunal is affirmed. [S. 37(1)]

S. 36(1)(iii) : Interest on borrowed capital-, Entire interest expenses had to be allowed in toto under section 36(1)(iii) as well as under section 37(1) as being for purpose of business-Order of Tribunal allowing the interest is affirmed. [S. 37(1) 260A]

S. 32 : Depreciation-Plant-Oil wells constitute plant-Eligible for depreciation.

S. 32 : Depreciation-Actual cost-Block of assets-Subsidy from State Government-Incentive to establish an industrial unit in the backward area-Employment generation-Capital receipt-No adjustment is warranted to reduce form the cost of acquisition. [S.2(11), 4, 43(1)]

S. 32 : Depreciation – Rate of depreciation – Computer accessories and peripherals – Entitle to depreciation at 60 percent.

S. 32 : Depreciation-Revaluation-Actual cost – Taken over assets and liabilities of the firm-Actual cost of assets will be actual cost which assessee paid to predecessor after revaluing assets-Entitled to claim depreciation for subsequent years on basis of actual cost paid. [S. 43(1), Proviso ,260AR. 5]