S. 36(1)(iii) :Interest on borrowed capital – Debit balance in one of partner’s current account for last several years – Principle of consistency is followed – Disallowance of notional interest of 12 % is held to be not valid .

S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services -Technology collaboration and technical assistance agreement- Assessed as fees for technical services – DTAA -India – Sweden [S. 9(1) (vi) , Art , 12 ]

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Computer software -Grant of non-exclusive non-transferable license in computer software with no right to sub-lease or transfer would fall within purview of Royalty- Chargeable to tax- Liable to deduct tax at source – DTAA -India -Italy [S. 40 (a)(i), 195 , Art . 13(3) ]

S. 61 : Revocable transfer of assets – Association of person- Revocable Trust – Beneficiaries unknown- Write back of provision – liquidating/recovering NPAs acquired from banks- Trust cannot be assessed as an Association of persons- Revocable trust provisions of section 61 to 63 is applicable – When names of beneficiaries of assessee-trust and their respective shares were known since inception and also proceeds had been distributed as per their respective shares, assessee-trust could not have been considered as an indeterminate trust- Write-back of a provision could be made taxable only if same was claimed as a deduction in earlier year when it was created. [ S. 2(31)(v), 4 , 62 , 63 , 164 (1) , SARFAESI Act ]

S. 56 : Income from other sources –Purchase of flat – Gift – Stamp valuation and actual consideration – Addition was set a side [ S.56 (2) (vii) ]

S. 54B : Capital gains – Land used for agricultural purposes -Agricultural land was sold by assessee on 12-10-2011 and new agricultural land was purchased on 26-8-2013- Denial of exemption is held to be not justified [ S. 45, 54B(2), 139(4) ]

S. 45 : Capital gains – Capital asset- Agricultural land- Not able to show any crop produced and expenses incurred – Assessable as capital gain [ S. 2(14)(iii), 10(1) ]

S. 44AD :Presumptive taxation- Turnover exceeded Rs 1 crore – Accounts not Audited – Net profit shown 0.99% of turnover – Assessing Officer estimated at 8% of turnover – Assessing Officer cannot make estimation of income without rejecting the books of account [ S.44AB , 144 ]

S. 40(a)(ia): Amounts not deductible – Deduction at source – Interest other than interest on securities -Co -operative bank – Members – Not liable to deduct tax at source [ S. 194A (3)(v)]

S. 9(1)(vi) : Income deemed to accrue or arise in India – Web hosting services – Royalty – Providing IDC service to its Indian group companies from Singapore – Mail box/website hosting services- Not assessable as royalty- Management fess – Not assessable as fees for technical services – Fees for management services is not assessable as fees for technical services -Referral services/other services – Revenue received under referral agreement was not taxable as royalty under Act DTAA -India – Singapore [ S. 9(1)(vii), 90, Art 12 ] .