S. 147 : Reassessment-Change of opinion-Re-insurance premium- Failure to deduct tax at source–Reassessment is held to be bad in law. [S. 195]

S. 147 : Reassessment-Royalty–Survey-Merely because tax was deducted at source on such income it could not be said that there was no escapement of income-Wrong mentioning of provision of law relating to other issues in the reasons recorded would not vitiate reassessment proceedings-Reassessment is held to be valid -DATA- India -South Korea. [S. 133A, 148, Art. 5(2)]

S. 147 : Reassessment-Capital gains—Transfer of property—Development agreement-General power of attorney-Handed over possession-Liable to capital gains-Reassessment is held to be valid–To determine short term or long term, matter remanded to AO. [S. 2(47)(v), 148 Transfer of Property Act, 1882, S.53]

S. 115JB : Book profit-Insurance Companies-Provision is not applicable.

S. 92C : Transfer pricing-Arm’s Length Price-Payment of application cost-TNMM method–TPO adopted CUP method and determined nil–Separate bench marking is required–Receipt for services-Addition was made without examining the provision of S.37(1)–Matter remanded.

S. 80IC : Special category States-substantial expansion-Entitle to deduction. [S. 80IB (5), 80IC(7)]

S. 44 : Insurance business-Sale of investments-Held to be taxable. [S. 14A]

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable–Rent-No written agreement-Both are paying same rate of taxes-Revenue neutral- No disallowance can be made– Rent paid to sister concern–Matter remanded for verification.

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident–Re-insurance Premium-Profit of non-resident re-insurance company was taxable in India-liable to deduct tax. [Insurance Act 1938, S.2(9),114A ]

S. 37(1) : Business expenditure-Compensation payable-Unascertainable liability-Not allowable as deduction.[S. 145]