S. 194IA : Deduction at source-Immoveable property–Purchase through power of attorney holder for Consideration of Rs. 60.12 lakhs-Each co-owners share is less than 50 lakhs–Not liable to deduct tax at source–Addition confirmed by the CIT (A) is deleted. [S. 201(1), 201(IA)]

S. 92C : Transfer pricing–Arm’s length price-Safe Harbour Rules (Position prior to 1-10-2009)-As per CBDT Circular No. 5/2010 dated 3-6-2010, amendment to proviso to section 92C(2) being applicable from assessment year 2009-10 onwards, benefit of +/- 5 per cent variation as sought by assessee was acceptable for assessment year 2004-05.

S. 92B : Transfer pricing–Share purchase agreement–Brand ambassadorship-Since parties to SPA was not an AE of assessee nor JIPL entered into a prior agreement with AE of assessee, Not an international transaction-S. 92 is not an independent charging section to bring in a new head of income or to charge tax on income which is otherwise not chargeable under the Act. No income had accrued to or received by the assessee under section 5, no notional income can be brought to tax under. 92. [S. 92B(2), 92C]

S. 90 : Double taxation relief-DTAA credit-Dividend from Cyprus is entitle to exemption-DTAA-India–Cyprus. [S. 90, Art. 25(4)]

S. 80JJA : Bio-degradable waste-Collecting and processing– Matter remanded for disposal in light of report given by a Chemical Expert Certifying as to whether contents of two products manufactured by assessee namely ‘bio-pesticides’ and ‘bio-fertilizers’ were distinct or not. [S. 254(1)]

S. 80IB(11A) : Undertaking-Business of processing, preservation and packing of fruits or vegetable eligible-Business of extraction of oil from oil palm by different processes and preservation of oil under adjusted temperature and then packaging of oil in large containers or tanks, could be said to be from business of processing, preservation and packing of fruits or vegetable eligible for deduction.

S. 69A : Unexplained money–Addition made merely on the basis of show cause notice by Excise department for alleged under valuation of shares is held to be not valid. [S. 148]

S. 56 : Income from other sources–HUF-Gift- Amount received as gift from ‘HUF’, being its member, is a capital receipt not liable to tax- Precedent – CIT is bound to follow the order of Tribunal-Revision is held to be not valid. [S. 4, 10(2), 56(2)(vii), 263]

S. 36(1)(iii) : Interest on borrowed capital–Purchase of offices spaces–Possession not taken–Interest paid is held to be not allowable as deduction.

S. 28(iv) : Business income-Value of any benefit or perquisites- Converted in to money or not-Perquisites-Waiver of loan amount under one time settlement could not be said to be benefit or perquisite arising from business–Not taxable-Waiver of loan amount, which was not claimed as deduction by assessee in earlier years, would not amount to cessation of trading liability- Waiver of loan could not be said to be without consideration hence cannot be taxes as income from other sources. [S .41(1), 56(2)(vi)]