S. 10A : Free trade zone – Computer software – Expenses which are to be excluded from the export turnover would also have to be excluded for the purpose of computing total turnover- Deduction rightly claimed u/s 10A instead of S.80HHE of the Act . [ S.80HHE ]

Natural Justice-Right of cross examination is not required to be granted when the statement is not used against the assessee and matter is decided on other evidence-Non furnishing of the documents on which the reliance is being made, principle of natural justice is violated-Matter remanded.

Interpretation -Precedent -Recalled order cannot be relied upon as precedent.

S. 295(4) : Directors-Professionals-Liability of professionals acting as Non-executive directors-cannot be prosecuted for offenses committed by the company.

S. 85 : Prosecution-Operation of impugned restraining order of High Court is stayed-Petitioners are free to prosecute respondent and proceed further in accordance with law, subject to the final decision of this matter. [S. 86]

S. 2(ea)(v) of : Urban Land-Expression “the construction of building not permissible under any law in force” cannot be equated with regulatory requirement of any statutory provision which mandates obtaining of permission from the Competent Authority-Restriction and prohibition are two different concepts- Tribunal was right in holding that lands were includible in net wealth as ‘urban land’.

S. 292C : Presumption as to assets, books of account–Does not hold good in case the addition is made in the hands of a person other than the person searched- Un explained expenditure. [S. 69C, 153A, 153C]

S. 271(1)(c) : Penalty–Concealment-Explanation 5A-Disclosure of additional income in the statements and in return filed under S. 153A-Notwithstanding that the income declared in the return fled for the period under consideration is accepted – Liable to penalty. [S.153A]

S. 263 : Commissioner-Revision of orders prejudicial to revenue– CIT has to record his prima facie opinion in the show-cause notice, that the assessment order is erroneous and prejudicial to the interest of the revenue.

S. 260A : Appeal – High Court – Jurisdiction – Bombay High Court does not have jurisdiction to entertain appeals in respect of order passed by the Bangalore Bench of the Tribunal, notwithstanding the fact that an order was passed under S.127 transferring the assessee’s case from AO at Bangalore to AO at Pune. [S. 116, 124, 127]