S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Supply of equipment-sale from outside India-Risk and title transferred outside India and no transaction taking place in India-Customs clearance, inland transportation done by buyer on its own-No permanent establishment involved in sale–Income is not taxable in India-DTAA–India–Japan [S. 44D, Art. 7, 24]
S. 2(22)(e) : Deemed dividend-Advance to shareholders— Interrelated group concerns—Advances given by one concern to another concern to tide over short-term financial deficiency to be treated as commercial expediency—Amount given not in nature of any loans or advances to assess as deemed dividend.
S. 80IA :Industrial undertakings – Infrastructure development- Contractor and not developer – Question of law is a substantial question of law admitted by High Court . [S. 80IA(4) , 260A ]
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Merely because period of three years expired from arising of the liability would not automatically mean that the liability has ceased – Order of Tribunal is affirmed .
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Old unpaid liability for sundry creditors- Exhaustion of period of limitation may prevent filing of recovery proceedings in a Court of law, nevertheless it cannot be stated by itself that the liability to repay the amount had ceased- Addition cannot be made .
S.32: Depreciation –Installation of windmill – 80% depreciation allowed on Civil Construction ,electrical and other non integral part of installations – Held to be allowable .
Interpretation of taxing statutes – Equity or hardship not factor to be considered in deciding validity of provision- Promissory estoppel- No estoppel against legislature . [ S.35AC, Art .142 ]
S. 10A : Free trade zone – Computer software – Expenses which are to be excluded from the export turnover would also have to be excluded for the purpose of computing total turnover- Deduction rightly claimed u/s 10A instead of S.80HHE of the Act . [ S.80HHE ]
Natural Justice-Right of cross examination is not required to be granted when the statement is not used against the assessee and matter is decided on other evidence-Non furnishing of the documents on which the reliance is being made, principle of natural justice is violated-Matter remanded.
Interpretation -Precedent -Recalled order cannot be relied upon as precedent.