S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–development of Basic engine-design a new 3 valve cylinder head for improvement of fuel efficiency, performance and meeting Indian emission standard–Payment is not royalty -DTAA-India–Australia. [S.9(1)(vi), Art. 6(2)]

S. 4 : Charge of income-tax–Capital or revenue-Compensation awarded under Motor Vehicles Act or Employees’ Compensation Act in lieu of death of a person or bodily injury suffered in a vehicular accident, is a damage and not an income and cannot be treated as taxable income- Not liable to deduct tax at source on compensation and interest accrued thereon. [S. 194A]

S. 251 : Appeal – Commissioner (Appeals) – Power of enhancement – Action plan -The CBDT should reconsider the direction in the Central Action Plan of offering incentives to Commissioner (Appeals) to enhance assessments and levy penalty- From the action plan, it is not clear as to the utility of the norms set which the Commissioner (Appeals) has to achieve- If the purpose of setting of norms is to evaluate the performance of the Commissioner (Appeals) there would be all the more reason why the above quoted portion of the action plan be reconsidered by the CBDT.[ S.119 , 250 ]

S. 226 : Collection and recovery Stay of demand- The CBDT’s Circulars & Instructions are in the nature of guidelines & cannot substitute or override the basic tenets – The AO is required to assist a taxpayer in every reasonable way-.Even if the assessee has not specifically invoked the three parameters for grant of stay, it is incumbent upon the AO to do so & pass a speaking order.[ S.220(3) , 220 (6) ]

S.28(va) :Business income – Capital or revenue – Sale of a technical concept, that the assessee developed on his own, with respect to website malware monitoring- Test of human probabilities has to be applied to decide whether what is apparent is real- Assessable as business income . [ S. 28 (v) ,45, 55(2)(a) ]

S. 281 : Certain transfers to be void -Attachment of property- Transfer of property before assessment order was passed–Transfer is not void–Order of attachment by Tax recovery Officer is held to be void. [S. 156, 220 to 232, Second Schedule, R.2, 4, 16(2), 48,Securitisation Act, 2002 , S. 26E .]

S. 275 : Penalty-Bar of limitation–Concealment of income-With effect from 1-6-2003–Limitation of six months from end of month in which order of Tribunal is received-Order received on 31-1-2008-penalty order was passed on 31-7-2008–Not barred by limitation. [S. 271(1)(c)]

S. 271E : Penalty-Repayment of loan or deposit–No commercial exigency is shown–Levy of penalty is held to be justified. [S. 2(31), 269SS, 271D, 273B]

S. 271C : Penalty-Failure to deduct at source– Delay in paying whole or part of tax deducted at source- Reasonable cause-Penalty can be waived or reduced-Interpretation-When there is ambiguity interpretation in favour of assessee is to be adopted. [S.194C, 276C(1), 273B]

S. 263 : Commissioner-Revision of orders prejudicial to revenue– Land held as stock in trade-Revision is held to be not valid.