S. 90 : Double taxation relief-Mutual agreement procedure-DTAA has precedence over provisions of Act where beneficial to assessee-Respondents are directed to take necessary measures within a reasonable time-DTAA-India-USA. [S. 90(2), IT Rule, 44F, 44G 44H, Art. 27(2)]

S. 57 : Income from other sources-Deductions-Advance towards purchase of properties-Not necessary that expenses should have resulted in income-Sufficient if nexus is established between expenses and income-Question Before Tribunal regarding extent of deduction allowable-Tribunal does not have power to disallow entire Deduction [S. 36(1)(iii), 57(iii), 254(1)]

S. 43B: Deductions on actual payment-Property taxes paid-Deductible. [S. 145]

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Entitled to benefit of write off of irrecoverable debts under section 36(1)(vii) in addition to deduction of provision for bad and doubtful debts-Rural Branch-Matter remitted to Assessing Officer. [S. 36(1)(vii)]

S. 36(1)(ii) : Bonus or commission-Bonus paid to directors to avoid dividend distribution tax-Services not rendered-Disallowance is held to be justified. [S. 37(1)]

S. 10(21) : Scientific research association Agricultural research Registered under Tamil Nadu Societies Registration Act-Entitle to exemption. [Tamil Nadu Societies Registration Act, 1975]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Transferee authorised to use licensed software-No transfer of Copyright-Amount received is not royalty-DTAA-India-USA. [S. 90(2) Art. 12]

S. 48 : Capital gains -Computation – Sale of shares – Fair market value as on 1-4 -1981 – Capital asset- Valuation based on valuation report – Department is not justified in rejecting the valuation adopted on the basis of approved valuer -On the peculiar facts of this case the Tribunal uphold the plea of the assessee, and direct the Assessing Officer to adopt the valuation of Rs 3,833 computed by the assessee on the basis of the fair market value of the net assets [ S. 2(22B) 45, 49, 55 ]

S. 271(1)(c) : Penalty-Concealment-Cash credits-Recoding of satisfaction-Show cause notice did not indicate whether there was concealment of particulars of income or furnishing of incorrect particulars of such income-Deletion of penalty is held to be valid. [S. 274]

S. 264 : Commissioner-Revision of other orders-Powers-Capital gains-Full value of consideration-Escrow account-Consideration received less than the amount credited in the account-Only actual consideration taxable-Power of Principal Commissioner not restricted to allowing relief only up to returned income -Recomputation results in income less than returned income-Section 240 not applicable-Entitle to refund of excess tax paid. [S. 45, 48, 240, 264, Art. 226]