Education Expenses for Director's Children Qualify as Business Expenditure Under Section 37; Bad Debts Write-off Allowed Under 36(1)(vii)

The ITAT allowed deduction under Section 37 for education expenses sponsored for director's children, following precedent that educational sponsorship in business-relevant disciplines qualifies as valid business expenditure. Regarding bad debts, write-off was permitted under Section 36(1)(vii) without proving irrecoverability. On Section 14A disallowance, matter remitted to AO for fresh consideration per prevailing law. Computer peripherals including UPS qualified for 60% depreciation rate as integral computer components. Duty credit scripts addition dismissed as amounts were already offered for taxation. The tribunal's ruling largely favored the assessee, upholding CIT(A)'s findings on multiple grounds while remanding Section 14A computation for fresh assessment. .....

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