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.

S. 68 : Cash credits-Books of account-Sale of shares-long term capital gains–Bank statement is not books of account-Addition cannot be made without giving an opportunity of cross examination–Addition is deleted. [S. 2(12A), 44AA]

S. 37(1) : Business expenditure–Construction business- Accounting Standard-2- Justified in debiting all expenses to work-in-progress except expenses related to administration, selling, marketing, etc. [S. 145]