S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Training services rendered by assessee to Indian Hotels could not be held to be technical services, nor same could have been characterized as ‘ancillary and subsidiary’ services – DTAA-India- Netherland [ Art .12(5)(a) ]

S. 9(1)(i): Income deemed to accrue or arise in India– Reimbursement of expenses – Failure to substantiate on basis of any clinching evidence – Assessable as business income- India -Nether land . [ Art.7,12 ]

S. 5 : Scope of total income -Retention money- Merely because retention money was accounted for in books of account, same could not be brought to tax without income having been actually accrued- Retention money is taxable in assessment year in which it was actually received . [ S.4, 145 ]

S. 251 : Appeal – Commissioner (Appeals) –Additional evidence-Valuation report of the CA which was filed before the CIT (A)-Tribunal directed the CIT(A) to accept the additional evidence as no opportunity was given by the AO to exercise the option as per Explanation (a) (ii) to section 56(2)(viib) of the Act. [ S.56(2)(viib), 254(1), R. 11UA(1) (b) ]

S. 49 : Capital gains – Previous owner – Firm – Partner-Period of holding-Dissolution of firm- With effect from 1-4-1988 to section 49(1)(iii)(b), period of holding of an asset by an erstwhile partner of a dissolved firm was not to include period of holding of such asset by firm – Period to be reckoned from date of distribution to partner-Asset held was only for one year and two months – Not entitle exemption in respect of investment in certain bonds.[ S. 29A), 2(31),2(42A),45, 50, 54EC ]

S.45: Capital gains- Business income- Share investment- All transactions were delivery based, income arising from such investment was to be treated as capital gain when all earlier years revenue assessed the gains as capital gains. [ S.28(i) ]

S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Commission- Disallowance of 30% of commission- Without placing on record any material to prove that payments made by assessee were excessive or unreasonable considering fair market value of services -No disallowance can be made .

S.37(1):Business expenditure- Travelling expenditure -Fringe benefit tax on travelling expenses incurred by it during year, travelling expenses could not be disallowed on account of personal expenditure. [ S.115JB ]

S. 36(1)(iii) :Interest on borrowed capital –Captive power plant for expansion of existing business- Allowable as deduction irrespective of fact whether such power plant had commenced production or not in year under consideration

S. 36(1)(ii):Bonus or commission- Restriction of allowance would apply only to an employee who is also share in company -Payment made to agent who was an MD of company in earlier years and in the relevant year he was not an employee -Disallowance cannot be made .