S. 11 : Property held for charitable purposes-Application of income-Income applied outside India for educational purpose-Specific approval from CBDT for said purpose-Claim of exemption was allowed-Rectification order passed by the Assessing Officer allowing the claim-Rectification order merged with Assessment order-Commissioner (Appeals) cannot hold that original order will survive. [S. 11(1)(c), 12A, 250]

S. 10A : Free trade zone-Turnover-Providing technical services outside India-Expenditure incurred towards date link charges/telecommunication charges etc-Excluded both from export turnover and total turnover for purpose of computation of deduction-Profit enhanced on account of disallowance entitled for deduction-Subsequent realized export income which was claimed by filing revised return is entitle for deduction. [S. 40(a)(ia)]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Reimbursement of cost for rendering administrative services-Not taxable in India as fee for technical services-DTAA-India-Denmark. [S. 9(1))(vi), Art. 13]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Data access/link charges from its Indian subsidiary was neither for scientific work nor any patent, trademark, design, plan or secret formula or process, thus, it could not be held to be royalty-Copyrighted/shrink-wrapped software, which could not be treated as consideration for transfer of any copyright, thus, same could not be treated as royalty-Professional and consultancy services provided by assessee, a USA based company to an Indian company, did not ‘make available’ any technical knowledge, experience, skill, know-how or process or consist of any development and transfer of any design, receipt on account of said services was not taxable as fee for included services-DTAA-India-USA [Art. 12 (4)].

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Earning from branch offices in UAE and Qatar are to be included in assessee’s taxable income in India-DTAA-India-Qatar. [S. 90(3), 297(2)(k), Art. 7]

S. 5 : Scope of total income-Transfer of development rights-Joint venture agreement-Partial payment as advance-Failure to perform obligation-Not assessable as income. [S. 145]

S. 2(22)(e) : Deemed dividend-Loans and advances-Commercial transactions-Addition cannot be made as deemed dividend.

S. 271G : Penalty-Documents-International transaction-Transfer pricing-TPO accepted benchmarking under TNMM-Levy of penalty is held to be not justified. [S.92D]

S. 271B : Penalty-Failure to get accounts audited-Vague notice-Failure mention specific charge-Levy of penalty is held to be not valid-Delay in filing tax audit report-Reasonable cause-Levy of penalty is held to be not justified. [S.273B]

S. 271(1)(c) : Penalty-Concealment-Estimate of income-Satisfaction-8% of contractual receipts-Levy of penalty is held to be not justified.