S. 32 : Depreciation-Intangible asset-Non-compete fee-The expression “or any other business or commercial rights of similar nature” used in Explanation 3 to sub-section 32(1)(ii) is wide enough to include non-compete rights–Eligible for depreciation. [S.32(i(ii)]

S. 32 : Depreciation-Unabsorbed depreciation-Carry forward and set off-Eligible and for carry forward and set off against business profits. [S. 32(2)]

S. 32 : Depreciation-Additional depreciation-Revision of orders prejudicial to revenue-Tribunal allowed assessee’s claim for additional depreciation by following order of jurisdictional High Court – Revision is held to be not valid. [S. 263]

S. 28(i) : Business loss-Future and options loss-Client code modification- Repetitive client code modifications-Client code modifications are tainted with collusive action and manipulation– Loss is held to be bogus–Not allowable as business loss- Reassessment is also upheld. [S.133(6), 147, 148]

S. 15 : Salaries–Provision made by a company for payment of managerial remuneration- Liable to be assessed as salary.

S. 10(22) : Educational institution-Property was purchased in name of Secretary and Manager of Society for running a school- Profits of institution was being used for self aggrandizement-Denial of exemption is held to be justified. [S. 12AA]

S. 5 : Scope of total income–Accrual-Demurrage charges–Mercantile system of accounting. [S. 145]

S. 4 : Charge of income-tax–Subsidy from foreign company – Capital receipt not liable to tax.

S. 271B : Penalty-Failure to get accounts audited-Illness of Director cannot be the reasonable cause for long delay in complying audit obligation – Levy of penalty is held to be justified. [S. 44AB, 273B]

S. 145A : Method of accounting – Valuation of stock- Excise duty- Not added to purchases, sales or valuation of inventories – Valuation of closing stock, excise duty had rightly been excluded from value of closing stock of finished goods at end of accounting period.