S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–Liaison office–Involved in preparatory and auxiliary activities but also involved in ascertaining customer requirements, price negotiations obtaining of purchase orders etc–Constituted PE in India and profit attribution has to be done-DTAA-India-Singapore. [S. 92, Art. 5]
S. 2(22)(e) : Deemed dividend-In balance sheet of ‘K’ Ltd, amount in question was not shown as loan to assessee-addition is deleted.
S. 2(1A) : Agricultural income-Income from mushroom spawn grown in nursery qualifies as agricultural income-Eligible for exemption-Issue restored to file of AO to determine whether spawn was actually grown by assessee-Reassessment is held to be valid. [S. 10(1)]
S. 271AB : Penalty–in search case-Assessee not person subjected to search-Penalty proceedings against assessee not sustainable. [S. 132(4)]
S. 271AAA : Penalty-Search initiated on or after 1st June, 2007- AO must establish there was undisclosed income-Estimated income not undisclosed income-No specific finding in respect of any specific seized material or undisclosed income detected as a result of search-Penalty is not leviable. [S. 132]
S. 271(1)(c) : Penalty–Concealment-Notice–No specific charge and limb under which penalty proposed–Concealment of income or inaccurate particulars of income–Notice void ab intio. [S. 274]
S. 271(1)(c) : Penalty–Concealment–Loss of equipment-Forfeiture of security deposit–Revenue or capital expenditure-Debatable issue-Full disclosure during the assessment proceedings–Levy of penalty is held to be not valid.
S. 271(1)(c) : Penalty–Concealment-Mere claim–Furnishing inaccurate particulars of income–Levy of penalty is not justified – Delay of 229 days condoned due to health ground. [S. 10(13A), 254(1)]
S. 271(1)(c) : Penalty–Concealment–In the absence of evidence to suggest concealment of income or furnishing of inaccurate particulars, penalty cannot be levied.
S. 271(1)(c) : Penalty–Concealment-Where income was offered in the return and tax paid thereon, penalty could not be levied. [S. 153A, 271AAA]