S. 37(1) : Business expenditure–Capital or revenue-Legal and professional expenses-Litigation expenses -Buy back of shares– Allowable as revenue expenditure.

S. 32 : Depreciation–Purchase of business on slump sale- Intangible assets and marketing rights-Depreciation is allowable- Not a related concern-Provisions of S. 40A(2)(b) of the Act cannot be applied. [S. 40A(2)]

S. 28(i) : Business loss-Speculative transaction–Damages–Palm oil-Damages paid for not honouring commitments to take delivery against some purchase orders placed on foreign sellers– Allowable as business loss – Not speculative loss. [S. 43(5)]

S. 14A : Disallowance of expenditure-Exempt income-In absence of any exempt income disallowance cannot be made. [R. 8D]

S. 11 : Property held for charitable purposes-Depreciation- Application of income – Eligible depreciation. [S. 32]

S. 10(26B) : Schedule castes or schedule Tribes–Housing scheme for benefit and welfare of employees of Police department, Government of Arunachal Pradesh-All persons of Police Department are not belonging to Scheduled Castes, Schedule Tribes or other backward classes- Not eligible for exemption.

S. 4 : Charge of income-tax-Capital or revenue-Foreign exchange fluctuation gain-Business not commenced-Profits or gains arising out of fluctuation of foreign exchange rate would be capital in nature-Revision is held to be not justified. [S. 4, 28(i), 263]

S. 2(22)(e) : Deemed dividend-Substantial share holding–Sale of flat and a major portion of price remained unpaid by end of previous year–justified in treating said amount as deemed dividend. [S. 260A]

S. 2(14)(iii) : Capital asset-Agricultural land- Classified as dry land for which Kishtu had been paid- Adjacent land was divided into plots for sale cannot be the ground to reject the claim of the assessee. [S. 45, 260A]

S. 271C : Penalty-Failure to deduct at source-Regular delays on part of assessee in depositing tax deducted at source-Levy of penalty is held to be justified. [S. 273B]