S. 80JJA : Bio-degradable waste-Collecting and processing-Undisclosed closing stock of a trading concern-Income not derived from the activity of manufacturing-Addition of entire stock as income justified-Business expenditure-Expenditure not supported by vouchers-Restriction of disallowance to 10 percent of expenditure is held to be justified. [S. 37(1), 260A]

S. 69C : Unexplained expenditure-Bogus purchases-Sundry creditors-Only profit element embedded in credits can be taxed-Restricted to 25% of element of profit-Order of High Court is affirmed-SLP of Revenue is dismissed. [S. 37, 69A, 143(3), Art.136]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Freight charges-Payments to contractor- Excess of Rs. 50,000 without deducting tax at source-No evidence to prove that there was no contract- High Court held that disallowance is justified- Special leave granted.[S. 194C, Art. 136]

S. 37(1) : Business expenditure-Commission-Reasonableness to be considered from point of view of businessman-Revenue cannot rewrite the agreement-Appeal is allowed. [S. 260A]

S. 36(1)(viii) : Eligible business-Special reserve-Rule of consistency-Methodology consistently adopted-deduction allowed for earlier assessment years attaining finality-Deletion of disallowance is affirmed-SLP of Revenue dismissed. [S.145]

S. 14A : Disallowance of expenditure-Exempt income-Shares held as stock in trade-Dividend income earned-Order of Tribunal deleting the addition is affirmed by High Court-SLP of Revenue is dismissed. [Art. 136]

S. 12AA : Procedure for registration-Trust or institution-Violation of provisions of section 13(1)(c)-Rejection of application not erroneous.[S.11, 13(1)(c), 132, 133A]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Project-specific technical and consultancy services to an Indian company-Did not satisfy the ‘make available’ clause, did not warrant tax under Article 12(4)(b) of the DTAA between India and the US-DTAA-India-USA. [Art. 12(4)(b)]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Computer software- Sale of conditional access systems and middleware products to Indian customers- Not taxable as royalty-DTAA-India-Switzerland.[art. 12(3)]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fees for included services- Reviewing risk factor in particular project- Cannot be deemed to accrue or arise in India- DTAA-India-USA.[S.9(1)(vii), art.12]