S. 37(1) : Business expenditure-Capital or revenue-Software company-Expenditure on developing new product-New product abandoned as not feasible-Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Licence fee-Allowable as deduction.

S. 37(1) : Business expenditure-Capital or revenue-Construction and handing over of transmission lines sub-station-Revenue expenditure.

S. 32 : Depreciation-User of asset-Pollution control devices-Order of Tribunal is affirmed.

S. 32 : Depreciation-Intangible asset-Leasehold right-Depreciation is allowable.

S. 28(i) : Business loss-Future and options-Not claimed in the original return-Retraction in the original assessment proceedings-Tribunal affirmed the order of the CIT(A), allowing the claim.[S. 139(5), 154, 260A]

S. 14A : Disallowance of expenditure-Exempt income-Not recording satisfaction-Order of Tribunal deleting the addition is affirmed. [R. 8D]

S. 10(46) : Body or Authority-Specified income-Issue concluded by Supreme Court-Matter remanded to Central Board of Direct taxes. [S. 119, Art. 226]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Payment to Non-Resident telecommunication operators for provision of bandwidth and inter-connectivity usage-Not royalty-Not liable to deduct tax at source-Expansion of definition of royalty inserted later-Assessee cannot be expected to foresee future amendment at time of payment in earlier assessment y ears-Jurisdiction-No jurisdiction to tax income arising from extra-territorial source-Double Taxation Avoidance Agreement-Sovereign document between two countries-Applicable in Proceedings under Section 201 of the Act-DTAA-India-Belgium. [S. 195]

S. 68 : Cash credits – Long term capital gains – Penny stock –Not subjected to any enquiry by SEBI – Sold through DMAT account – STT paid – Purchased at a rate as low as Rs.2.5/- to Rs.3/- per share and they were sold at a rate extremely as high as Rs.125/- to Rs.185/- per share- Order of Tribunal deleting the addition is affirmed . [ S. 10(38), 45, 260A ]