Sharpedge Ltd. vs Income Tax Officer

Whether cash allowances like HRA and medical reimbursement form part of salary or perquisite for computing disallowance under s. 40A(5) --- Held: Part of salary. Whether commitment charges on unutilized loan are revenue expenditure deductible under s. 37(1) --- Held: Yes. Whether expenditure on removing burnt fittings and dismantling floor after fire is revenue or capital in nature --- Held: Revenue. Whether expenditure on food/beverages for employees during conferences/meetings falls under s. 37(2A) as entertainment --- Held: No. Whether change in accounting method for export incentives from mercantile to cash basis is permissible --- Held: Yes. Whether provisional insurance claim receipt credited to suspense account is taxable income --- Held: No. Whether depreciation @15% on plant and machinery is allowable --- Held: Yes. Whether extra shift allowance should be allowed on concern as a whole basis --- Held: Yes. Whether extra shift allowance is allowable on tubewells --- Held: Yes. Whether investment allowance is allowable on machinery purchased from investment allowance reserve --- Held: Yes. Whether weighted deduction under s. 35B(1)(b)(ix) is allowable for quality control expenditure related to exports --- Held: Yes.