S. 45 : Capital gains – Capital asset- Agricultural land- Not able to show any crop produced and expenses incurred – Assessable as capital gain [ S. 2(14)(iii), 10(1) ]

S. 44AD :Presumptive taxation- Turnover exceeded Rs 1 crore – Accounts not Audited – Net profit shown 0.99% of turnover – Assessing Officer estimated at 8% of turnover – Assessing Officer cannot make estimation of income without rejecting the books of account [ S.44AB , 144 ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Interest other than interest on securities -Co -operative bank – Members – Not liable to deduct tax at source [ S. 194A (3)(v)]

S. 9(1)(vi) : Income deemed to accrue or arise in India – Web hosting services – Royalty – Providing IDC service to its Indian group companies from Singapore – Mail box/website hosting services- Not assessable as royalty- Management fess – Not assessable as fees for technical services – Fees for management services is not assessable as fees for technical services -Referral services/other services – Revenue received under referral agreement was not taxable as royalty under Act DTAA -India – Singapore [ S. 9(1)(vii), 90, Art 12 ] .

S. 45 : Capital gains –Investment in foreign exchange – Deduction of tax at source- Principally- Taxation of business profits was expressly dealt with by article, those business profits could not be taxed in source jurisdiction for want of satisfying fundamental condition precedent for its taxability, i.e., existence of a PE in source jurisdiction – DTAA-India -Spain [ S.56 , Art . 7, 14(1) (14(5) ,23 (3) ]

S. 268A : Appeal-Monitory tax effect less than of Rs. 1 crore-Appeal dismissed. [S. 260A]

S. 264 : Commissioner-Revision of other orders-Capital gains-Sale of agricultural land-Order set aside-Matter remanded to the Assessing Officer [S. 45, 54B, Art. 226]