S. 115A : Foreign companies–Tax–Royalty–In terms of technology license agreement entered into by assessee an Italy based company with its Indian AE effective from 1-04-2008, being covered by sub-clause (AA) of section 115A(1)(b), rate of tax on royalty recieved by assessee will be 10.50 per cent-DTAA- India Italy. [S.90(2), 195A]
S. 72A : Carry forward and set off of accumulated loss– Amalgamation-Not specified at to how those conditions were not met-Allowed to be set off.
S. 56 : Income from other sources-Joint venture company of Central and State Government-Metro Rail project-Fixed deposit with Bank – Not assessable as income from other sources [ S.4 ]
S. 36(1)(iii) : Interest on borrowed capital–Advance to sister concern- Sufficient own interest free funds-Presumption would arise that advances made by assessee to its sister concern were out of interest-free funds – No disallowances can be made.
S. 14A : Disallowance of expenditure-Exempt income–No exempt income during assessment year–No disallowance can be made .[ R.8D.
S. 11 : Property held for charitable purposes-Salary paid to trustee-Exclusively working for trust–Earlier years accepted – Denial of exemption is held to be not valid. [S. 12A, 13(1)(c)]
S. 45: Capital gains- Transfer – Possession was handed over –Subsequent termination of contract by mutual consent and returned back the sale consideration received- Liable to capital gains tax in the year of handing over of possession of property [ S.2(47)( v), Transfer of Property Act,1929, S.53A,Registation Act 1908, 17(1A) ]
S. 271G : Penalty – Documents – International transaction – Transfer pricing -No adjustment was made – Failure to furnish documents -Filed belatedly – Levy of penalty is held to be not justified [S. 92CA, 273B]
S. 271(1)(c) : Penalty-Concealment–Capital gains not shown in the return–Assessment proceedings agreed to pay the tax as he was unaware of tax on sale of property–No malafide intention–Levy of penalty is held to be not justified. [S.45, 148]
S. 271(1)(c) : Penalty – Concealment – Capital loss was not allowed to be carry forward – With drawn in return filed pursuance of notice u/s 148- Every legal claim which was filed and which was not allowed by Revenue did not automatically lead to levy of penalty. [S.147, 148]