Business expenditure substantiation supports scrap credits, statutory payments and expense claims, while depreciation requires proof of actual business use.

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....Business expenditure, statutory liabilities and depreciation are addressed through principles governing scrap credits, CENVAT adjustments, actual payment and business use of assets. Scrap credits passed to a job-work customer are treated as an ascertained commercial liability where customer ownership, quantification and payment are evidenced. Only CENVAT credit attributable to capital assets reduces depreciable cost; tools, spares and stores treated as revenue items do not form part of the depreciable block. Statutory excise duty and crystallised performance incentives are allowable on qualifying actual payment. Depreciation requires evidence that assets were actually put to business use. Ad hoc expense disallowances require identified defects or cogent adverse material, and TDS-receipt differences require proof of unaccounted income.....