S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Sales transaction on principal-to-principal basis for resale-transaction between parties was accepted to be at arm’s length by TPO-attribution of profit to PE in India could not be sustained – DTAA-India – Singapore.[Art. 5(8), 5(9)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-DRP cannot invoke provisions of section 44BB without any good and sufficient reason while departing from methodology adopted by revenue in respect of attribution of profit to PE on receipts from offshore supply of equipment in past assessment years-DTAA-India – Singapore .[S.44BB, Art,6,7]

S. 5 : Scope of total income-Passing of entries in books of account not conclusive to determine income-Entries in books representing notional income – Notional income is not taxable.[S. 145]

S. 4 : Charge of income-tax-Capital or revenue receipt-Entertainment tax subsidy is capital receipt not exigible to tax. [S. 28(i)]

S. 4 : Charge of income-tax-Subsidy-Technology up gradation fund scheme-Capital in nature though net off against the interest expenditure in the books of account is still capital in nature and therefore not taxable. [S. 28(i)]

S. 2(24)(xviii) : Income-Assistance in the form of a subsidy or grant or cash incentive or duty drawback or waiver or concession or reimbursement-Subsidy was given to setting up a new biomass co-generation system or to promote existing systems and its benefits – Capital subsidy – Directed to reduce from cost of asst acquired out of said subsidy and allow depreciation.[S. 4, 32, 43 (1)

S. 2(24)(x) : Income-Any sum received by assessee from his employees-Addition to be made prior to apportionment of 60% as agricultural income and 40% as business income. AO directed to recompute disallowance and only 40% amount to be added to business income. [S. 36(1)(va), 43B, R. 8]

S. 2(14)(iii) : Capital asset-agricultural land-land situated within the jurisdiction of municipality limit-Chargeable to capital gain tax. [S. 2(14)(iii)(a), 2(14)(iii)(b), 45]

S. 279 : Offences and prosecutions-Sanction-Chief Commissioner-Commissioner-Offences and prosecutions-Failure to pay to the credit tax deducted at source-Sanction for prosecution-Reasonable cause-Failure to deposit tax deducted at source due to prevalence of pandemic-Reasonable cause shown for failure-Sufficient cause-Assessee depositing tax deducted at source in phased manner with interest though after delay-Prosecution orders set aside.[S. 2(35), 276B, 278AA, 278B, 279]

S. 276C : Offences and prosecutions-Wilful attempt to evade tax-
Self-Assessment tax shown in return but paid late-Penalty levied-Nothing on record to show deliberate and wilful default of evasion of tax-Complaint and summoning order quashed.[S. 276(2), 278]