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]

S.37(1): Business expenditure-Additional levy of coal pursuant to Supreme court direction-Allowable as deduction. [S. 145]

S. 37(1) : Business expenditure-Travelling expenses-Ad-hoc disallowance is not justified.

S. 37(1) : Business expenditure-Mercantile system of accounting-leas rent paid pertaining to earlier year-Crystallised during financial year-Allowable as deduction.[S. 145]

S. 37(1) : Business expenditure-Foreign Travel expense-Expenses or payments not deductible-Excessive or unreasonable-Motor Car Expenditure to director-Restriction of disallowance to 10% is held to be justified.[S. 40A(2)]

S. 37(1) : Business expenditure-Capital or revenue-Payment for subscription services of software-No acquisition of software-Telephone and internet expenses-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Capital or Revenue-Non-compete fee-Amortised-Depreciation claimed-Capital expenditure. [S. 32]