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. 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. 14A : Disallowance of expenditure-Exempt income–Disallowance cannot be made when there is no income exempt from tax. [R. 8D]

S. 260A : Appeal – High Court –Without admitting the appeal and framing any question of law and dismissing it is not in conformity with the mandatory procedure –High Court is directed to hear the appeal following the mandatory procedure. [ S.260A(2) ( C ), 260A(3) ]

S.254(1) : Appellate Tribunal- Duties- Ex parte order- Even if the assessee could not appear , the Tribunal could have decided the appeal on merits- The Tribunal ought to have restored the appeal on miscellaneous application filed by the assessee- Court also directed to send the copy of the Judgement to the President of the Tribunal as well as Law Secretary in the Ministry of law and Justice so that the same may be brought to the notice of all the Members of the Tribunal . [S.260A, ITATR.1963, R. 24 ]

Words and Phrases — “And” — “Or”.

Interpretation of taxing statutes-Retrospective Operation- Presumption of retrospective application of amendments of Procedural nature.

S. 254(1) : Appellate Tribunal-Duties-Capital or revenue-Tribunal Recording Inconsistent findings–Matter remanded to Tribunal for decision afresh. [S. 37(1), 260A]

S. 148 : Reassessment–Notice–Reasons for reassessment need not be given in notice-Writ is held to be not maintainable–Respondent was directed to furnish the recoded reasons from the receipt of order copy–Petitioner can file objection if any against the recorded reasons with n four weeks from the date of receipt of the reasons. [S.147, Art. 226]

S. 147 : Reassessment-Mixed question of facts and law- Writ is held to be not maintainable–Time limit for issue of Rs. 1 lakh of is applicable to S.149(1)(b) and not for S,149(1) (a) of the Act—Notice to reassessment issued within six years is not barred by limitation. [S. 148, 149(1)(a), 149(1)(b), Art. 226]