S. 9(1)(vii) : Income deemed to accrue or arise in India – Fees for technical services -Fees for Services received by UAE Company from Indian company was business income in hands of said company as per DTAA between India and UAE and in absence of any PE of any said company in India, business income could not be taxed in India-DTAA-India-UAE. [Art. 5, 7, 12]
S. 4 : Charge of income-tax – Capital or revenue -Incentive received under Package Scheme of Incentives of Govt. of Maharashtra is capital receipt and not liable to tax.
S. 263 : Commissioner-Revision of orders prejudicial to revenue -Book profit – Exempt income- two views possible -Revision is held to be bad in law. [S.14A, 115JB, R. 8D]
S. 145 : Method of accounting–Mercantile system-Mixed system of accounting-Asseseee cannot follow cash system selectively for certain receipts-Statutory provisions under Act would prevail over any observation/objection/remark of audit party of CAG.
S. 145 : Method of accounting-Project completion-Profit and loss account and Balance sheet is prepared on completion of project, provision for expenses in respect of ancillary work yet to be completed has to be taken in to consideration – When the payee is not known it is not possible to deduct tax at source on estimated expenditure – Not liable to deduct tax at source – No disallowance can be made. [S. 40(a)(ia)]
S. 144C : Reference to dispute resolution panel -Not an eligible assessee- Draft assessment order is invalid. [S. 92CA(3)]
S. 143(3) : Assessment-Limited verification–The AO has to consider the claim of the assessee to make correct assessment- Matter remanded
S. 69 : Unexplained investments-Hindu undivided family -Agricultural land -Partition- Fixed deposits–Benami names of family members–Retraction of statement-No assessment is made in larger Hindu undivided family–Additions can be made in the hands of smaller HUF-Investments in fixed deposits to be considered as unexplained investments of smaller HUF in equal shares- Matter remanded. [S. 132(4), 171]
S. 56 : Income from other sources-Agricultural land-Gift-Agricultural land is an immovable property-Stamp valuation-It is immaterial whether they fall under definition of capital asset or stock-in-trade- Chargeable as gifts. [S. 2(14), 50C, 56(2)(viib), 69]
S. 45 : Capital gains-Business income–Investment in shares- Demarcated shares as investment in its balance sheet-Profit arising on sale of shares is chargeable to tax as capital gains and not as business income. [S. 28(i)]