S. 37(1) : Business expenditure-Capital or revenue-Premium paid to allottee on redemption of debentures-Allowable as revenue expenditure.

S. 14A : Disallowance of expenditure-Exempt income-No exempt income received during the year-Disallowance cannot be made. [R. 8D]

S. 10AA : Special economic zones-Export turnover-Telecommunication expenses were to be excluded from export turnover.

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Non-resident-Providing satellite transmission services is not royalty-Order of Tribunal affirmed-DTAA-India-Netherland. [S. 260A, Art. 12]

S. 2(14)(iii) : Capital asset-Agricultural land-Mango, orchard-Situated beyond 8 kms. of City corporation-Sale proceeds of land is entitled to exemption. [S. 45]

S.147: Reassessment – After the expiry of four years – Mutual fund Spill over expenses, offer expenses, SEBI Registration fee – On the same set of facts reassessment order is bad in law – Assessing Officer has no power to review the assessment order – Order of reassessment was quashed [ S. 148 ]

S. 40(b)(v) : Amounts not deductible – Partner – Remuneration – Supplementary deed operates retrospectively if the deed is in accordance with the law – Disallowance of remuneration was deleted [ S. 40(b)(ii) ]

S. 281B : Provisional attachment-Mere apprehension that huge demand would be made is not sufficient-Tangible reasons are required-Grant of approval cannot be mechanical-Approval for attachment cannot be given without considering facts. [Art. 226]

S. 276C : Offences and prosecutions-Wilful attempt to evade tax-Failure to produce accounts and documents-Admission regarding Foreign Bank account after an investigation by department-Revised return was filed after issue of notice-Failure to disclose foreign account opened in year 1991 when the assessee was 55 years of age-Cannot take benefit of circular recommending any prosecution where the assessee is aged 70 years or more at time of offence-Launching of prosecution is justified. [S. 132, 153A, 271, 271(1)(b), 274, 276C(1), 276D, 277, Code of Criminal Procedure, 1973, S. 245(2), Central Board Of Direct Taxes Instruction No. 5051, Dated 7-2-1991]

S. 275 : Penalty-Bar of limitation-Limitation-Limitation starts from the date of assessment when the Assessing Officer initiates penalty proceedings and not from the date of sanction for penalty proceedings. [S. 271D, 275(1)(c)]