S.37(1): Business expenditure-VAT penalty is compensatory in nature and would be allowable as deduction.

S.37(1): Business expenditure-Warranty provision-Provision is calculated based on DCF method in a scientifically sound and consistent method which complied with Accounting Standard 29 (AS-29)-Allowable as deduction.[S. 145]

S. 36(1)(iii) :Interest on borrowed capital-Interest free loan-Share capital and reserves and surplus far exceeding interest-free advances-No disallowance can be made-Matter remanded.

S. 36(1)(iii) :Interest on borrowed capital-Interest free advances-Sufficient own capital and free reserves-Disallowance of interest is deleted.

S. 35 : Expenditure on scientific research-Capital gains-Business discontinued-Deduction under section 35(1)(ii) can be claimed only from income falling under head Profits and gains of business or profession under section 28-; a Not entitled to claim deduction from capital gain.[S. 28(i), 35(1(ii), 45]

S. 32 : Depreciation-Toll roads-Constructing a road on BOT basis on Government land-Not owner of road-Toll bridge and toll roads are not tangible assets of assessee in terms of Explanation-3(a) to section 32(1)(ii) [S.32(1)(ii)]

S. 32 : Depreciation-Business premises on lease-Improvement of leased premises by interior decoration, like false ceiling, painting etc.-Write off total expenses at 20 per cent ascertaining life of expenditure incurred between 3 to 5 years-Claim of depreciation is justified.

S. 28(i) : Business income-Prize winnings from unsold lottery tickets-Income from other sources-Reseller of Government paper lottery tickets-Prize winnings from unsold lottery tickets would part of business income-Eligible to set off its losses. [S.2(24)(ix), 56(2)(ib), 70, 71, 74A, 115BB, 194B]

S. 22 : Income from house property-Business of all kinds of engineering products including financing, manufacturing, selling-Rental income assessable as income from house property and not as business income. [S. 28(i), 263]

S. 22 : Income from house property-Annual value-Stock in trade-Construction business-Operation of sub-section (5) of section 23 inserted by Finance Act, 2017 is not made retrospective and, thus, annual value/deemed rental income of property held as stock-in-trade can be calculated and shall be chargeable to income tax only with effect from assessment year 2018-19 and not prior to that. [S. 23(4), 23(5)]