S. 37(1) : Business expenditure-Provision for contingent liabilities-High Court affirmed the order of Tribunal-SLP of Revenue is dismissed for failure to condone delay of 289 days. [Art. 136]

S. 32 : Depreciation-Revaluation-Actual cost-Taken over assets and liabilities of the firm-Actual cost of assets will be actual cost which assessee paid to predecessor after revaluing assets-Entitled to claim depreciation for subsequent years on basis of actual cost paid-SLP of Revenue is dismissed. [S. 43(1), Proviso, R. 5, Art. 136]

S.28(i):Business income-Capital or Revenue-Capital asset-Relinquishment in settlement agreement-Receipt on Arbitral Award-Difference between lease and licence-Trading and service agreement-No rights conferred except running hotel-Termination of agreement as result of settlement or compromise of all claims, counter-claims and disputes-Receipt on Arbitral Award on termination of agreement-Revenue receipt and not capital receipt.[S.2(14), 4, 45, 260A,Indian Easement Act, 1882 S. 52]

S. 11 : Property held for charitable purposes-Corpus fund-Corpus Donations-Securing admission-Tribunal is not justified in holding ineligible for exemption on corpus Fund.[S.11(1)(a), S. 11, Property held for charitable purposes.[S. 11(1)(d), 260A]

S. 11 : Property held for charitable purposes-Denial of exemption When the registration is granted by the CIT(E), further probe by Assessing Officer into objects of Trust based on such objects is not permissible-Activities of to identify, enrol, allot work, regulate operation of private workers from time of inception-Activities for advancement of general public utility-Surplus earned retained for carrying out activity-Cannot be treated as business activity-Exemption cannot be denied-Advances to Trustees-Interest recognised on accrual basis-Loans covered by adequate security and interest-Cannot be treated as investments in violation of S.11(5) 11(3) of the Act-No violation of Section 13(1)(c). 13(2) of the Act. Accumulation of funds-Form 10 filed for Assessment Year 1999-2000 showing purpose of accumulation-Purpose of accumulation is not general in nature-Activities carried on in accordance with approved charitable objects for which assessee was formed and registered-No violation of Section 11(2) [S. 11(2) 11(4A), 11(5), 12A, 13(1)(c), 13(2)]

S. 11 : Property held for charitable purposes-Denial of exemption When the registration is granted by the CIT(E), further probe by Assessing Officer into objects of Trust based on such objects is not permissible-Activities of to identify, enrol, allot work, regulate operation of private workers from time of inception-Activities for advancement of general public utility-Surplus earned retained for carrying out activity-Cannot be treated as business activity-Exemption cannot be denied-Advances to Trustees-Interest recognised on accrual basis-Loans covered by adequate security and interest-Cannot be treated as investments in violation of S.11(5) 11(3) of the Act-No violation of Section 13(1)(c). 13(2) of the Act. Accumulation of funds-Form 10 filed for Assessment Year 1999-2000 showing purpose of accumulation-Purpose of accumulation is not general in nature-Activities carried on in accordance with approved charitable objects for which assessee was formed and registered-No violation of Section 11(2)-Delay of 496 days in filing the SLP-SLP of Revenue is dismissed. [S. 11(2) 11(4A), 11(5), 12A, 13(1)(c), 13(2) Art. 136]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Provision of connectivity solutions-Services to customers of Indian companies outside India-Consideration received on basis of agreements from telecommunication operators for Bandwidth and inter-connectivity usage of their customers-Provisions of double taxation avoidance agreement override statutory provisions and amendments thereto-Receipts not assessable as royalty in India-No alienation of copyrighted articles, patents, trademarks, designs, models, secret formulae or processes, property or information-Mere advantage or benefit derived from service provided cannot be countenanced to fall within meaning of expressions use or right to use-Receipts under agreements for provision of bandwidth not royalty-Use or right to use-DTAA-India-Singapore.[S.90(2),260A, Art.3(2), 12(3)]

S. 250 : Appeal – Commissioner (Appeals) – Non-speaking order – Procedure Cash credits – Un secured loan from Magunta exports – Return showing nil income –Duty of CIT(A) – Duty to give reasons for order – Conclusions were in the nature of ipse dixit and no supporting reasons were discernible – Order of CIT(A) confirming the addition is set aside – Matter remanded to the file of the CIT(A). [ S. 68, 115BBE, 250, Art .226 ]