S. 147 : Reassessment-After the expiry of four years-Client code modifications (CCM)–Recorded reasons being vague merely on the basis of information received from the office of DIT (Intell CR Inv.) reassessment is held to be bad in law. [S. 148]

S. 37(1) : Business expenditure–Capital or revenue–Royalty paid for license to use is held to be revenue expenditure.

S. 36(1)(vii) : Bad debt – Provision for doubtful debts debited to P&L account also stands reduced from the trade receivables–Held to be allowable as bad debt.

S. 28(1) : Business income–Suppression of income-Future and options-Shares and derivatives – Client code modifications (CCM)- Burden is on the assessee to establish that the client code modifications have been done on the behest of the assessee– Addition cannot be made as suppression of income of the assessee. [S.143(3)]

S.28(i): Business loss- Future and options- Shares and derivatives – Client code modifications (CCM) – No stretch of imagination can any AO consider a transaction on the stock exchange as income of a person other than the one who has either actually received monies in his bank account (In case of profit) and /or paid any monies from his bank account (in case of loss) – burden is on AO to establish that the losses were purchased or that there was payment in cash/cheque for such favors . Client code modification with in 1% of is absolutely normal [S. 143(3)]

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record–Appeal admitted before High Court- Rectification application is not maintainable.

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record – Judges can change or alter their decision at any time until the judgement is signed & sealed-A miscellaneous application on the ground that the ITAT Members stated a particular decision during the hearing but did the opposite in the order is not maintainable.

S. 143(3) : Assessment-Assessed income can fall below returned income-Disallowance can fall below disallowance suomotu voluntarily made by the assessee in the return of income filed. [S. 14A, 139, R.8D]

S. 143(2) : Assessment–Notice–Authorised representative-Objection to service of notice was objected by the Assessee–Objection was later withdrawn by the assesee’s representative by signing order sheet–Consent given by the representative is binding on the assesse-Challenge to the assessment on the basis that there was valid service is held to be not valid. [S. 288, 292BB]

S. 14A : Disallowance of expenditure – Exempt income -Only those instruments/securities which yielded exempt income during previous year relevant to assessment year would be considered for computing disallowance-If disallowance falls below disallowance under section 14A offered by assessee in return of income, revenue cannot charge tax on income which never was income of assessee chargeable to tax. [S. 139, 143(3), R.8D]