S.32: Depreciation — Rate of depreciation —All equipment formed part of Life Saving Equipment —Denial of depreciation on computer is held to be not proper [ ITRules 1962, Appex. I, Part A Iii 3(Xia)(D).]

S.28(i):Business income — Capital gains — Conversion of agricultural land into residential plots and sale of residential plots -Consideration over fair market value to be assessed as business income -No question of law .[ S.4, 45 , 260A ]

S. 10 (23C): Educational institution-Exemption cannot be denied only on the ground that institution has earned surplus when the institution is solely for educational purposes .

Interpretation – Binding precedent -Appellate Tribunal- Assessing Officer is bound by decision of Tribunal- Pendency of an appeal would not amount to an order of stay .[ S.254(1) ]

Words and Phrases- Meanings of -“irregularity” and “illegality”.

S. 271(1)(c) : Penalty – Concealment – Cash credits- Reasonable cause in omitting rental income- Deletion of penalty is held to be justified .[ S.260A ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Allowability of interest -Assessing officer taking plausible view after proper enquiry — Order is not erroneous and cannot be revised. [ S.57(iii)]

S. 260A : Appeal – High Court -Question of Law — Interpretation of document is question of law —Amount received by assessee under non-compete agreement constitute capital receipt . [ S.4 ]

S. 254(1) : Appellate Tribunal – Duties-Business income or capital gains- Investment in shares- The entire data of each transaction was before the Tribunal and nothing prevented it from looking into all the transactions and recording findings of fact-The Tribunal had failed to perform its duty and therefore, its order was unsustainable. The matter was remitted to the Tribunal for decision afresh. [ S. 28( i), 45 ]

S. 245D : Settlement Commission -Finding of failure by assessee to make true disclosure of undisclosed income — The limited jurisdiction of judicial review while examining the correctness of the order of the Settlement Commission is a well settled principle- Rejection of application is held to be justified. [ S.245C ]