S.5 : Scope of total income – Non-resident foreign national – Alleged deposits in HSBC Foreign Bank account at GENEVA – Deletion of the addition by the CIT(A) is held to be not justified – AO is directed to make further investigation to find out whether the source of the deposits in foreign account originated from India. [S.5(2), 6, 9]

S. 250 : Appeal – Commissioner (Appeals) – Procedure – All issues to be mandatorily adjudicated when specific ground is raised. Matter remanded to CIT(A) to decide all the issues raised before him afresh which were not adjudicated [ R.27 ]

S.5:Scope of total income – Non-Resident- Alleged deposit in HSBC foreign bank Account at Geneva – A non -resident having money in a foreign country cannot be taxed in India if such money has neither been received or deemed to be received , nor ha it accrued or arisen to him or deemed to accrue or arise to him in India -Addition cannot be made for the alleged deposit in foreign Bank accounts [ S. 5 (2) ,6, 9 ]

S. 48 : Capital gains – Computation -While computing the capital gains the benefit of indexation should be given on basis of date of acquisition of asset and not on basis of actual payment [ S. 45 ,55(2)]

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –While dealing with the application for rectification , the Tribunal where it finds is an error apparent on record then it should recall the original order and place the appeal for consideration of the issue on merits before the Regular bench -It is not appropriate to dispose of the controversy on merits of the submission while disposing of the Rectification application .[ S.11(1) ]

S. 4 : Charge of income-tax – Income derived by a trade , professional or similar association from specific services performed for its members -Non-Resident- Mutuality – Liaison office of non-resident non profit organisation for the benefit of members in the absence of profit motive and surplus if any was ploughed back in to the organisation again to be utilised for same objects-Income cannot be asssseed as business income -Receipts from non members only 2.05% and also isolated incident which has not affected the dominant object of the applicant – Membership fee and contribution from members is also not liable to tax in India – Once principle of mutuality is applied , the question of a permanent establishment did not arise – Receipt or income cannot be taxed applying the principle of mutuality .[ S.28(iii)]

Interpretation of taxing statues- Rule against double taxation

Interpretation of taxing statues- “Explanation” and “Proviso” .

S.195: Deduction at source- Non –resident- commission paid to non-resident agents for services rendered outside is not liable to deduct tax at source.

S. 69C : Unexplained expenditure -Bogus Purchases- Purchases cannot be treated as Bogus if (a) they are duly supported by bills, (b) all payments are made by account payee cheques, (c) the supplier has confirmed the transactions, (d) there is no evidence to show that the purchase consideration has come back to the assessee in cash, (e) the sales out of purchases have been accepted & (f) the supplier has accounted for the purchases made by the assessee and paid taxes thereon [ S.143(3) ]