S. 4 : Charge of income-tax-Diversion of income by overriding title-State Government undertaking entrusted with Government funds-The income never reached the assessee and was diverted at source by an overriding title-Addition is not valid. [S. 145]

S. 2(22)(e) : Deemed dividend-Shareholder-Advances to share holder-Portuguese Civil Code-Companies Act-Concept of common ownership of assets by spouses under Portuguese Civil Code is not applicable-Order of Tribunal affirming the addition is affirmed. [S. 260A, Companies Act, 1956, 150, 152A, Portuguese Civil Code 1867]

Interpretation of taxing statutes.

S. 90 : Interpretation- Double taxation avoidance agreements – Most favoured nation-DTAA – India – France — Netherlands- Switzerland . [ S.90(1) , Art. 73 ]

S.153A: assessment – Search – Less than 50 lakhs – Assessment beyond six years is bad in law . [ S.69, 132 ]

S.54B: Capital gains – Land used for agricultural purposes –Investment in new agricultural land – Loan was repaid after sale consideration was received – Order of CIT(A) deleting the addition is affirmed – Cash credits – Matter remanded to the Assessing Officer . [ S. 45 ]

S.37(1): Business expenditure –Non compete fee –Capital expenditure – Entitle to depreciation – Provision for litigation and taxation matter – Matter remanded .[S.32]

S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Banks -Schedule bank –Average advances of rural branches – Advances outstanding as well as fresh advances are to be considered .

S. 36(1)(vii) :Bad debt –Banks – Non -Rural branches – Amounts written off – Allowable as deduction.

S.14A: Disallowance of expenditure – Exempt income – No expenditure is incurred for earning dividend income – Disallowance is not justified . [ R. 8D ]

S.2(14)(iii): Capital asset – Agricultural land –Sale of agricultural land – Purchaser changed the use for commercial purposes – Not assessable as capital gains . [Gujarat Tenancy and Agricultural Lands ( Amendment ) Act , 1997 ( GT & All) S.63AA,65B]