S. 56 : Income from other sources-Share premium-Not received any consideration for allotment of shares in previous year relevant to current assessment year-Deletion of addition by the Tribunal is affirmed-Assessing Officer has no jurisdiction to substitute NAV method of assessing valuation of shares, once assessee has exercised option of a DCF valuation method as per rule 11UA(2)-Order of Tribunal is affirmed. [S.56(2)(viib), 260A, R.11UA(2)]

S. 54F : Capital gains-Investment in a residential house-Surrender of tenancy-Stamp duty value-Unexplained investment-Show cause notice-Not an empty formality-Entitle to exemption-Assessment order is quashed. [S. 45, 56(2)(x)(a), 56(2)(x)(b), 115BBE, 143(3), 144B Art. 226]

S. 44BB : Mineral oils-Computation-Non-resident-Royalty-supply/lease/hire of rigs to be used for drilling and exploration of mineral oils-Amount received is covered under provisions of section 44BB and taxable on gross/presumptive basis at rate of 10 per cent-DTAA-India-Malaysia.[S.9(1)(vi), 115A, 260A, art. 12]

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Delay of 521 days-SLP of Revenue is dismissed. [Art. 136]

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Matter remanded back to the Assessing Officer. [S. 37(1), 40A(2)(a), Art. 136]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Fes for technical services-Reimbursement of expenses-Revenue had failed to establish that said remitted fee would fall within ambit of any technical, managerial or consultative service that had been rendered-Not liable to deduct tax at source-Order of Tribunal deleting the disallowance is affirmed-OECD Model Convention, art 7. [S.9(1)(vi), 195, 260A]

S. 37(1) : Business expenditure-Capital or revenue-Purchase of software-Not necessary that income must be earned because of such expenditure-SLP of Revenue is dismissed. [S. 28(i), Art. 136]

S. 37(1) : Business expenditure-Software development solution and management-Capital or revenue-Software abandoned-Work in progress-SLP of Revenue is dismissed.[Art. 136]

S. 37(1) : Business expenditure-Expansion of existing business-Revenue expenditure-Tax effect is below threshold limits-SLP of Revenue is dismissed. [S. 268A, Art. 136]

S. 32 : Depreciation-Carry forward and set off-Unabsorbed depreciation pertaining to assessment year 1997-98 could be allowed to be carried forward and set off after a period of eight years without any limit whatsoever in accordance with section 32(2) as amended by Finance Act, 2001-SLP of Revenue is dismissed. [S. 32(2), Art. 136]