S. 9(1)(vi) : Income deemed to accrue or arise in India–Royalty-Computer software-Payment made to its foreign based AE for purchase of copyrighted software would not be termed as payment of royalty-Information technology support services-Lease line charges-Not liable to deduct tax at source–DTAA-India-USA. [S.195, Art. 12]
S. 4: Charge of income-tax-Capital or revenue-Subsidy received from Government is a capital receipt not chargeable to tax-Rule of consistency to be followed.
S. 4 : Charge of income-tax – Subsidy – Refund of octori-Capital receipt – Not chargeable to tax. [S. 2(24)(xviii) 43(1), 56]
S. 2(24)(xi) : Income-Business income-Key man insurance policy-Accrual or receipt basis-Bonus on Keyman Insurance Policy taxable on receipt basiS. [S. 5, 28(vi), 10(10DD), 145]
S. 2(22)(e) : Deemed dividend-Advance given to society-Advance not to be treated as deemed dividend.
S. 271C : Penalty – Failure to deduct at source – Leave travel allowance – Bona fide belief – levy of penalty is held to be not justified .[ S.192, 201(1), 201(1) (A) ]
S. 194H : Deduction at source – Commission or brokerage – SIM distributors – Not liable to deduct tax at source – Roaming charges – Process of roaming does not require human intervention and cannot be considered as a technical service- Not liable to deduct tax at source .[ S. 194J ]
S. 56 : Income from other sources – Valuation of unquoted equity shares on 31-3-2014- If balance sheet was not drawn up by auditor on 31-3-2014, assets and liabilities in balance sheet of immediately preceding year, i.e., 31-3-2013 should be adopted. [S.56(2)(viib) , R.11UA ]
S. 54B : Capital gains – Land used for agricultural purposes – Agricultural land was converted into residential plots and not used for agricultural purpose- Deduction is not entitle .[ S.45 ]
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Trade payables outstanding for more than three years in the books – Addition cannot be made as remission or cessation of trading liability . [ S.68 ]