S. 43(5) : Speculative transaction–Hedge-Export business-Foreign currency derivate contracts are speculative in nature and loss arising out of the same has to be treated as speculative loss-The AO was directed to restrict the actual loss in lieu of actual export after verification of contract notes, etc. and the assessee was also directed to cooperate with the Department by producing all particulars.

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Income deemed to accrue or arise in India–Royalty–Payment to software–Not liable to deduct tax at source-DTAA-India-France. [S. 195, Art. 5, 12]

S. 40(a)(ia) : Amounts not deductible-Deduction at source–Commission paid to the foreign agents–Service rendered outside India–Not liable to deduct tax at source. [S. 9(1)(vii), 195]

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Labour charges–Failure to deduct tax at source-As per amendment brought to Finance Act, 2014 in s. 40(a)(ia) w.e.f. 01.04 2015, disallowance is restricted to 30% of amount of expenditure claimed-Amendment is applicable to retrospective effect. [S. 194C, 194H]

S. 40(a)(i) : Amounts not deductible–Deduction at source-Royalty-Fees for technical services-Not liable to deduct tax at source on referral fee paid to the foreign concern as the same did not fall within the realm of “Fees for included services” and there was no Permanent Establishment of the said foreign concern in India-No disallowance can be made-DTAA-India-USA. [S. 9(1)(vii), 90(2), Art. 7, 12]

S. 32 : Depreciation–Survey–Statement on oath-Merely on the basis of statement made in the course of survey-Depreciation cannot be disallowed. [S. 133A]

S. 32 : Depreciation–Business of transportation-Rural marketing promotions, Road shows, display advertising etc-Not entitle to higher rate of depreciation at 30%-Vehicles are used by the assessee for its own business and not carrying on transpiration– Entitle depreciation @ 15 % only.

S. 14A : Disallowance of expenditure-Exempt income – Owns funds were more than investments-No disallowance of interest-Indirect administrative expenditure of 5% of average investment is held to be justified. [R. 8D]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services–Taxable at 10%-DTAA-India-Switzerland [Art.5(2) (1), 12(2)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Apportionment of income-MAP proceedings– Appropriate to adopt 7.5 % as adjusted commercial linehaul charges (CLC) / total linehaul charges (TLC) ratio for computing taxable income-DTAA-India-USA. [Art. 8]