“Section 145(32)”

The word 'production' has a wider connotation than 'manufacture'; every manufacture is production, but not every production amounts to manufacture. 'Production' includes bringing into existence new goods, by-products, or inter-products through a process, which may or may not be manufacture.

An Income Tax Officer assessing income must determine the assessee's system of accountancy and, for the mercantile system, ascertain when the right to receive the income legally accrued.

The court may allow additional depreciation under section 32(1)(iia) for new machinery if it is used in the business of any article or thing, even if not directly linked to increasing production capacity.

A real estate development business is considered 'set up' when the assessee is in a position to undertake activities for the acquisition, development, and exploitation of real estate. Expenses incurred between the setting up and commencement of such a business are allowable, even if no revenue is generated or land is classified as a non-current investment.

Registration of a motor vehicle under the Motor Vehicles Act is not a prerequisite for claiming depreciation under the Income Tax Act. Beneficial ownership and actual use for business purposes are sufficient.

Depreciation on a vehicle cannot be denied solely because the transfer was not recorded under the Motor Vehicles Act or the vehicle stood in the vendor's name in official records, if the assessee can establish ownership.

Depreciation is not allowable on toll roads constructed under Build-Operate-Transfer (BOT) arrangements as the assessee does not acquire ownership of the road and the right to collect toll is merely a contractual right, not an intangible asset under section 32(1)(ii).

The discount on the issue of Employees Stock Options (ESOPs) is an ascertained liability, not a contingent one, and is an expenditure deductible under Section 37(1) for the purpose of earning profits through employee services.