S. 64 : Clubbing of income-Minor child-Guardian of minor is representative assesse-Income of minor assessable in hands of guardian. [S. 2(7), 2(31), 160(1)(ii), 148]

S. 56 : Income from other Sources-Purchase of shares at Rs. 4 per shares when the market price was Rs. 140 per share-Failure to explain by credible evidence or any reason or no motive for tax evasion-Difference is held to be taxable as income .[S.56(2) (vii) (c)]

S. 54B : Capital gains-Land used for agricultural purposes-No agricultural activities in preceding two years of transfer –Denial of exemption is held to be valid. [S. 45]

S. 37(1) : Business Expenditure—Capital or revenue—Repair- Lease premises-Expenditure on construction and renovation of premises taken on Lease—Held to be capital expenditure. [S. 32 (IA)]

S. 32 : Depreciation-Intangible asset-Non–compete fee-The expression “or any other business or commercial rights of similar nature” used in Explanation 3 to sub-section 32(1)(ii) is wide enough to include non-compete rights – Eligible for depreciation. [S. 32(i(ii)]

S. 28(i) : Business loss-Future and options loss-Client code modification-Repetitive client code modifications-Client code modifications are tainted with collusive action and manipulation– Loss is held to be bogus –Not allowable as business loss- Reassessment is also upheld. [S. 133(6), 147, 148]

S. 14A : Disallowance of expenditure-Exempt income–Disallowance cannot be made when there is no income exempt from tax. [R. 8D]

S. 260A : Appeal – High Court –Without admitting the appeal and framing any question of law and dismissing it is not in conformity with the mandatory procedure –High Court is directed to hear the appeal following the mandatory procedure. [ S.260A(2) ( C ), 260A(3) ]

S.254(1) : Appellate Tribunal- Duties- Ex parte order- Even if the assessee could not appear , the Tribunal could have decided the appeal on merits- The Tribunal ought to have restored the appeal on miscellaneous application filed by the assessee- Court also directed to send the copy of the Judgement to the President of the Tribunal as well as Law Secretary in the Ministry of law and Justice so that the same may be brought to the notice of all the Members of the Tribunal . [S.260A, ITATR.1963, R. 24 ]

Words and Phrases — “And” — “Or”.