S. 90 : Double taxation relief – Permanent Establishment – Assessee, a US company entered into a master franchise agreement with an Indian company for franchise of Dominos Pizza Stores – It provided certain store/consulting services to the Indian Company – Indian company paid store opening fees – assessee was entitled to charge 3 per cent of sales of store of Indian Company and further 3 per cent on sale of their sub-franchise store –Held, profit/loss from the business of Indian company and sub-franchisee belong to them – Held, none of the conditions or clauses of Permanent Establishment ,Article 5 were attracted and therefore, the Indian company did not constitute PE of the assessee in India-DTAA-India- USA.[Art.5 ]

S. 79 : Carry forward and set off losses – Change in share holdings – Companies which public are not substantial interested – Amalgamation – Scheme of amalgamation approved by the High Court – Held, such scheme approved in public interest and cannot be disturbed by the Department merely because assessee was not eligible for the same u/s 72A – Held, doctrine of acquiescence and estoppel applicable – Held, capital loss and business loss of amalgamating companies available to the amalgamated company [S. 72A]

S. 74 : Losses – Capital loss– shares sold at meagre value – sale price disbelieved by AO and accordingly, capital loss disallowed – Held, AO did not point out any discrepancy in the sale consideration – Held, AO did not conduct any enquiry in the hands of the purchaser – Held, loss cannot be disallowed.

S. 72 : Carry forward and set off of business losses – losses from non-speculation business can be set off against profit from speculation business . [S. 73]

S. 68 : Cash credits – Unsecured loans – Assessee furnished confirmation of account, copies of bank statement, acknowledgment of returns and financial statements of the creditors – Held no addition can be made.

S. 54F : Capital gains – Investment in a residential house – Exemption cannot be denied on the ground that residential building was used for business purpose [ S.54 ]

S. 45 : Capital gains – business income – Trading in shares – Held, in earlier years the same was assessed as capital gains in scrutiny assessments – Held, period of holding and receipt of dividend were not decisive factors – Held, to be assessed as capital gains. [S.28(i)]

S. 44C : Non-residents – Head office expenditure – salary paid to expatriates who were stationed in India working exclusively for the business operations of the Indian PE of the assessee – Held allowance and that provision of S.44C is not applicable.

S. 44BB : Mineral oils – Computation – Hiring of ships by Indian Companies used in connection with extraction of oil – Held, 44BB to prevail over section 44B, being more specific – Held, service tax being in the nature of a statutory payment cannot be included in the gross receipts for the purpose of computing the presumptive income u/s. 44BB [ S.44B ]

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident – Interest – Royalty – Fes for technical services – foreign agency commission – services rendered outside India – Held, no tax to be deducted at source – Held, no disallowance can be made. [S. 195]