S. 11 : Property held for charitable purposes – Late filing of return – CBDT Circular clarifies that trusts are eligible for exemption u/s.11 even if the return is filed belatedly, provided it is filed within the time permitted u/s.139 (4A) [ S. 139(4A) ]

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – US based company – Amount received by assessee from Indian customers on account of sale of software solutions – Not royalty income- DTAA -India -USA. [ Art. 12 ]

S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services -Sales commission received by USA Company from Indian company – marketing services provided outside India – Cannot be considered as FTS under 9(1)(vii) and Article 12 of DTAA –Not taxable in India – DTAA -India -USA [ Art. 12 ]

S. 9(1)(i): Income deemed to accrue or arise in India – Business connection -Assessee, US based company, had closed its Liaison Office (LO) operations in India and no business activity was carried out through the LO – Held, since assessee had no PE in India – Question of attribution of profits to PE in India did not arise – therefore, amounts paid by resident Indian end-users/distributions to the Assessee as consideration for resale/use of computer software through EULAs/distribution agreements, is not payment of royalty for use of copyright in computer software- DTAA -India -USA .[ Art.5 ]

S. 9(1)(i): Income deemed to accrue or arise in India – Business connection – AO considered assessee as supervisory PE – Estimated profit of 10% as profit rate on income earned and 25% as attributable towards PE – Held profits were taxable in India- ad-hoc percentage cannot be applied – matter set-aside to the Assessing Officer – DTAA -India – Germany .[ Art. 5, 7 ]

S. 4: Charge of income-tax – Receipt of certain amount from Government – credited to Income and Expenditure Statement under head ‘grant-in-aid’ for establishment expenses – issue of specific Accounting Standard was not dealt with by the AO, matter was to be remanded back to inter alia verify receipt of income and method of accounting adopted for the same – Form No 10- Condonation of delay – If CBDT condone delay in filing Form No 10 , the assessee would get consequential benefits under section 11(2) read with section 139(9) of the Act .[ S. 11,(2), 139(9), 145 ]

S. 2(42A) : Short-term capital asset – Capital gains – land received consequent to liquidation of company – Period of holding of land – from date of previous owner i.e., company – Assessable as long term capital gains- The land received as a result of liquidation of company – Does not amount to transfer of any capital asset within meaning of S. 50C of the Act .[ S. 45 ,46(2), 50C, 54F ]

S. 271F : Penalty – Return of income – Failure to furnish – Penalty cannot be levied if the estimated total income was less than maximum amount chargeable to tax – The basis of determination income in the assessment order cannot be said to be the basis for filing of return of income under section 139(1) of the Act- Penalty is deleted . [ S.139(1) , 144, 147, 148 ]

S. 271AAB:Peanlty -Search initiated on or after Ist day of July 2012-Not mandatory – Not specifying the specific charge – Penalty order is quashed . [ S. 132 ]

S. 271(1)(c) : Penalty – Concealment -Tax audit report mentioned the disallowance of expenses -Mistake while uploading the return -Department appeal is dismissed . [ S. 139, 260A, 274 ]