Agency reimbursement income follows contractual deposit-liability computation, while pending deposit collections do not constitute deemed-dividend loans.

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....Agency reimbursement income under an MOU is computed from the principal's opening aggregate deposit liability in finalised accounts; later variations are recognised in the following period. Expenditure is assessed by crystallisation of liability and business nexus: promotional and welfare costs may warrant reasonable restriction where entertainment or extravagance is possible. UPS battery replacement, printing and stationery are revenue items, while communication equipment is capital. Group expenditure requires documentary support, payment evidence, tax-deduction compliance and reasonable allocation. NBFC norms do not govern a partnership firm's field-agent commissions. Deposit collections held as agent pending remittance are not loans or advances for deemed-dividend purposes. Grievance-redressal costs connected with agency services qualify as business expenditure.....