S. 37(1) : Business expenditure-Capital or revenue-Licence-Capital asset-Amortisation of expenditure-Licence to operate telecommunication services-One-time entry fee and licence fee based on percentage of annual gross revenue earned-Both payments capital in nature and to be amortised-Intangible asset capital in nature.[S. 35ABB, The Telegraph Act, 1885, S, 4(1), 8, 20, 20A and 21]

S. 32 : Depreciation-Additional depreciation-Order of Tribunal is affirmed. [S. 32(1)(iia)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Indian firm sub-contracting work to firm in Philippines-No permanent establishment in India-Not liable to deduct tax at source. DTAA-India-Philippines. [S. 195, Art. 7(1), 23]

S. 4 : Charge of income-tax-Diversion of income by overriding title-State Government undertaking entrusted with Government funds-The income never reached the assessee and was diverted at source by an overriding title-Addition is not valid. [S. 145]

S. 2(22)(e) : Deemed dividend-Shareholder-Advances to share holder-Portuguese Civil Code-Companies Act-Concept of common ownership of assets by spouses under Portuguese Civil Code is not applicable-Order of Tribunal affirming the addition is affirmed. [S. 260A, Companies Act, 1956, 150, 152A, Portuguese Civil Code 1867]

Interpretation of taxing statutes.

S. 90 : Interpretation- Double taxation avoidance agreements – Most favoured nation-DTAA – India – France — Netherlands- Switzerland . [ S.90(1) , Art. 73 ]

S.153A: assessment – Search – Less than 50 lakhs – Assessment beyond six years is bad in law . [ S.69, 132 ]

S.54B: Capital gains – Land used for agricultural purposes –Investment in new agricultural land – Loan was repaid after sale consideration was received – Order of CIT(A) deleting the addition is affirmed – Cash credits – Matter remanded to the Assessing Officer . [ S. 45 ]

S.37(1): Business expenditure –Non compete fee –Capital expenditure – Entitle to depreciation – Provision for litigation and taxation matter – Matter remanded .[S.32]

S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Banks -Schedule bank –Average advances of rural branches – Advances outstanding as well as fresh advances are to be considered .