S.32: Depreciation- Capital or revenue expenditure -Technical knowhow payment – Agreement providing for payment of lump-sum consideration in five instalments- held to be capital in nature -Allowing the miscellaneous application the Court held that the assessee is entitle to depreciation.[S. 37]

S. 2(14)(iii) : Capital asset-Agricultural land- Solitary instance -Adventure in the nature of trade -Business -Purchase of agricultural land and sale of the said land after few years – Not deriving any income or not making any improvement of land and intention to earn profit cannot be the sole test to treat the transaction as adventure in the nature of trade – Solitary instance of sale alone could not characterise the transactions as an adventure in the nature of trade. [S. 2 (13)]

S. 153A : Assessment – Search- No incriminating material was found at the time of search- Assessment is void in law.

S. 147 : Reassessment-Reopening of assessment cannot be permitted merely on ground that there is change in view of AO and he subsequently believes that earlier view is incorrect. [S.133(6), 143(3)]

S. 147 : Reassessment-After the expiry of four years–Reassessment notice to be seta-side where no income had escaped assessment on account of assessee’s failure to disclose true facts in the assessment. [S. 148, 153A]

S. 143(3) : Assessment-Bogus purchases–Accommodation entries-Readymade garments-Addition of 25% is held to be proper. [S. 69]

S.115JB : Book profits-Provisions for computing book profits
is not applicable to Assessee company, engaged in the business of generation and distribution of electricity, who is required to prepare its books of account under the State Legislation and not as per the provisions of relevant Companies Act, 1956.

S. 50C : Capital gains – Full value of consideration – Stamp Duty Valuation – Where the assessee explained the reasons for fetching a lesser rate on sale of immovable property as compared to the Stamp Duty Valuation, the AO should have remitted the matter to the DVO for determination of the FMV of the immovable property. [S. 45]

S. 40(a)(ia) : Amounts not deductible- Deduction at source-Word ‘payable’ occurring in section 40(a)(ia) not only covers cases where amount is yet to be paid but also those cases where amount has actually been paid.

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Contractor – In absence of express or implicit contract between the assesse and the maistries, payments made to the labourers through maistries / group leaders did not attract deduction at source hence no disallowances can be made. [S. 194C]