S.147: Reassessment — After the expiry of four years- Notice issued within six years – escaped assessment of more than Rs .1 lakh – Not barred by limitation- Depreciation – No failure to disclose material facts – Change of opinion – Reassessment is bad on law . [ S. 32, 148 , 149(1) b) ]
S.143(3): Assessment – Trader transferring he goods to another trader. At a price less than the market price- Transactions showing loss – Addition cannot be made as income from undisclosed sources – No substantial question of law .[ S.260A ]
S.92C: Transfer pricing – Arm’s Length Price —Exclusion of comparables having high brand value is held to be proper .[ S.260A ]
S. 45(4) : Capital gains – Conversion of firm to pvt Ltd company – revaluation and transfer of assets from firm to company – Same partners as share holders- No dissolution of firm – No transfer – Not liable to capital gains tax . [ S.2(47) , 45 ]
S. 45 : Capital gains —Sale of land and building — Sale of land taxable as long term capital gains and sale of building as short term capital gains [ S.2(29A),2(29B), 50 ]
S. 37(1) : Business expenditure – Accrued or Contingent liability- Provision for warranty on scientific basis – Held to be allowable .
S.23: Income from house property- Annual value – Interest free deposit – Rented property – Deletion of the 12 per cent. interest on the interest-free deposit received by the assessee, to determine the annual letting value of the rented property- Held to be valid . [ S.22, 24 ]
S. 14A : Disallowance of expenditure – Exempt income -Interest – Disallowance can be only on net interest on the loan . [ R.8D ]
S. 14A : Disallowance of expenditure – Exempt income – Recording satisfaction – Mixed funds -Recording of satisfaction is mandatory- Disallowance is not attracted automatically . [ R.8D ]
S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Payment for installation of wind turbine, repairs to wind Turbine and for market study — Services rendered technical in nature -Liable to deduction of tax at source- DTAA -India – Sri Lanka . [ S.195 , 260A, Art, (12)(2) . ]