S. 11 : Property held for charitable purposes-Primary objective was to administer payment settlement system for larger benefit of general public and not to run clearing system in a commercial manner or on a commercial basis, assessee’s activities were charitable-Exemption cannot be denied. [S. 2(15), 12, 13(3), Companies Act, 1956, S. 25]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Wholly owned subsidiary in India-Entering into subscription agreement with various travel agents, it could be regarded as assessee’s fixed PE in India-DTAA-India-Singapore. [Art. 5, 8]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Dependent Agent-Arm’s length remuneration-DTAA-India-UK. [Art. 7]

S. 5 : Scope of total income-Sale of property-Amount represented outstanding receivable from buyer in respect of property sold in earlier assessment year-Addition is held to be not valid. [S. 145]

S. 5 : Scope of total income-Accrual income-Retention money-Taxable in the year of receipt. [S. 115JB, 145]

S. 2(24)(iv) : Income-Value of benefit or perquisite-Family arrangement-Lifting corporate veil-Benefit from receipt of shares-Sham and bogus-lifting corporate veil, without providing any cogent reasons could not have commented on said transaction as sham and bogus and by doing this he had overstepped provisions of Act and commented on third party assessee (beneficiary) which was not permissible.

S. 2(22)(e) : Deemed dividend-Share holder-10% share holdings-Transfer of shares before advancement of loan-Addition cannot be made as deemed dividend.

S. 2(14)(iii) : Capital asset-Agricultural land-Valuation-Matter remanded to the Assessing Officer with a direction to find out as to whether agricultural land fell within meaning of capital asset. [S. 56(2)(vii)(b)].

S. 271(1)(c) : Penalty-Concealment-Long term capital gains-Sale of land-Failure to discloses-Information through AIR-Explanation was not bonafide-Levy of penalty is held to be justified-Question of defects in the notice was not allowed to be raised first time before the High Court. [S. 143(2), 260A, 274]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Banking company-lapsed demand drafts, gift cheques etc-General Reserve-Write back allowed as business loss-Revision is held to be not valid. [S. 28(i)]