Section 35E of the Income Tax Act

Expenditure qualifies as 'current repairs' if it maintains existing machinery without replacement, creates no new asset, restores functional efficiency without increasing capacity, and is not an independent unit. Conversely, the cost of replacing machinery, especially independent units, constitutes capital expenditure.

Sponsorship expenditure, when akin to advertisement expenses, constitutes revenue expenditure and is allowable as a business deduction under the Income-tax Act.

Expenditure incurred to remove a restriction, obstruction, or disability preventing the carrying on of an existing business is revenue expenditure, provided no capital asset is acquired. The nature of the lease, purpose of expenditure, and its relation to profitable business operations are key considerations in mining cases.

Where the exact quantification of a liability is to be determined in the future, but the liability itself is certain, it can be accounted for. This principle is applied when a wage agreement is being finalized.

The High Court's direction to the CIT(Appeals) to consider specific Supreme Court judgments implies that cases may be decided on merits by appellate authorities based on relevant precedents without necessarily remanding them to the Assessing Officer.

Section 35E allows deduction for capital expenditure that is otherwise not deductible. However, if expenditure is admissible under Section 37(1), Section 35E should not be invoked to force amortization over 10 years instead of allowing it in the year of incurrence.