S.37(1):Business expenditure-Capital or revenue – Software -Expenditure incurred on acquiring licences to use software which did not confer any enduring benefit hence allowable as revenue expenditure.

S.37(1): Business expenditure -Amount paid to cane growers in excess of price determined in Sugarcane Control order, to be allowed as deduction.

S.32:Depreciation-Printer being a part of computer, is eligible for depreciation at higher rate of 60 per cent.

S. 5 : Scope of total income – Co –operative society- Banking business- Accrual- Interest on doubtful debts or Non-Performing Assets (NPAs) without such interest being actually received or credited in profit & loss account of assessee- Not required to pay tax on interest income .[ S.43D ]

S. 271AAB:Penalty -Search initiated on or after Ist day of July 2012- Amount offered was not undisclosed income -Levy of penalty was held to be not justified .[ S.132 ]

S.271(1) (c ):Penalty — Concealment- Quantum appeal the relief was allowed -Levy of penalty was held to be not valid .

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Share application money -No finding that assessee’s unaccounted money routed through circuitous manner — Assessment order accepting share capital/share premium is not prejudicial to interests of revenue — No Adverse finding or comment by Commissioner as why work-in-progress shown by assessee at nil is not correct or requires further inquiry or verification — Revision was held to be not valid [ S.68 , 145 ]

S.147: Reassessment – No return was filed before issue of notice – Un explained deposit in the Bank – Specific information with the AO – Reassessment is held to be valid [ S.148 ]

S.147: Reassessment – Capital gains on sale of land – Sale executed and registered 12-1-2007 – Escapement of capital gains in AY. 2007 -08 -Reopening of assessment for the AY .2006 -07- No nexus between material and the formation of prima facie belief that income had escaped taxation for the AY. 2006 -07 – Reassessment is held to be bad in law [ S.148 ]

S.147: Reassessment-After the expiry of four years- Bogus purchases- No tangible material before the AO to come to the conclusion that income has escaped assessment – Reassessment was held to be not valid . Notice based on information from Sales Tax Department that assessee obtained accommodation entries-Recorded reasons have a live link with formation of belief – Failure to disclose primary facts – Reassessment was held to be valid – Matter was remanded to the AO to give fair opportunity of hearing and opportunity of cross examination [ S.148 ]