S. 40(a)(ia): Amounts not deductible-Deduction at source-Non-resident-Shipping business-Where agents act on behalf of non-resident ship-owners or charterers, they would step into shoes of principal and hence, provision of section 172 would apply and not provision of sections 194C and 195-Not liable to deduct tax at source.[S. 171, 194C, 195, 260A]

S. 37(1) : Business expenditure-Web designing expenses –Allowable as revenue expenditure.

S. 37(1) : Business expenditure-Professional fees-Statement of the recipient during search-Affidavit filed-Subsequent statement-Failure to provide opportunity of cross examination-Allowable as deduction. [S. 132(4)]

S. 36(1)(iv) : Contribution towards a recognized provident fund-Contribution being neither towards an initial contribution nor towards an ordinary annual contribution, ceiling fixed of 27 per cent under rules 87 and 88 would not apply-Order of Tribunal is affirmed.. [R. 87, 88]

S. 32 : Depreciation-Option-No requirement of particular mode of exercising option-Option To Be Exercised Before Filing Return Or At Time Of Filing Return-Department Not Justified In Reducing Depreciation On Ground Assessee Had Not Specifically Opted For Written Down Value Method. [S. 139(1), Rules, 5(1)(IA)]

S. 28(i) : Business loss-Under invoicing of sales to sister concern-Books of account not rejected-Order of Tribunal is affirmed.[S. 4, 69, 145]

S. 10(26) : Schedule Tribes-Income of member of Scheduled Tribe-Individual-Special Bench-Family-Matter remanded to the Tribunal with a request to the President of the Tribunal to constitute a Larger Bench without including either member who was a party to the order for the consideration of the entire gamut of the matter. [S. 2(31), 184, 254(1), 255, 260A]

S. 10 (23C): Educational institution-Interest earned on grants-Quantifying amount of grant-in-aid-Eligible to claim exemption. [10(23C) (iiiac), 11, 13, R. 2BBB]

S. 10(1) : Agricultural income-Apportionment of expenses-Agricultural and trading-Order of Tribunal is affirmed. [S. 260A]

S. 271C : Penalty-Failure to deduct at source-External development charges to Haryana Urban Development Authority (HUDA)-Not liable to deduct tax at source-Levy of penalty is not justified.