S. 37(1) : Business expenditure -Capital or revenue – Expenditure on developing new product — Capital expenditure.

S.32: Depreciation — Unabsorbed depreciation — Carry forward and set off — Unabsorbed depreciation can be carried forward and set off against profits of current year.

S. 28(i) : Business income – Income from house property — Development of software park and leasing of it —Assessable as business income- The tendency of the Revenue authorities not to follow the judgments of superior constitutional courts deserves to be strongly deprecated by imposition of suitable costs on them. [ S.22 ]

S. 14A : Disallowance of expenditure – Exempt income – Amendment is not retrospective- Not applicable to Assessment year prior to AY 2007-08 [ S. 10(33),254(1) ]

S. 10AA : Special Economic Zones – Expenses incurred in foreign exchange for providing technical services not includible — Profits and gains derived from onsite development of computer services outside India deemed to be derived from export of computer software outside India [ 10B ]

S. 10A : Free trade zone – Interest on bank deposits includible while computing profits [ S.10B ]

S. 10 (23C): Educational institution-Burden of proof on revenue to show income of trust was not spent for educational purposes — Matter remanded [ S .10(23C(vi) , 254(1)]

S. 5 : Scope of total income – Accrual of income — Cash compensatory assistance and duty drawback —Not sanctioned to assessee during relevant year by customs authorities — Income did not accrue- Not taxable. [ S.145 ]

S. 271C : Penalty – Failure to deduct at source -Leave travel allowance – Reasonable cause -Penalty not warranted[ S. 10 (5) , 133A ,273B ]

S. 271(1)(c) : Penalty – Concealment – Not representing before CIT (A) – Matter remanded to CIT (A) [S. 250 ,254 (1) ]