S. 45: Capital gains-Business income-Land held as an investment-Profit on sale of land held by assessee should be considered as capital gains and not business profits-Circular No. 4 of 2007 dated June 15, 2007 ([2007] 291 ITR (St.) 384) is also applicable to land. [S. 2(14), 4, 28(i), 260A]

S. 44C: Non-residents-Head office expenditure-Expenditure on opening offshore branches of bank-money brought to India in foreign currency as per RBI circular-AO treated the expense as office expenses-Held, income from said transaction already taxed in India-Revenue Appeal dismissed. [S. 36(1)(iv), 40A(9), 40A(10), (260A R. 87, 88]

S.37(1): Business expenditure-Amortisation of expenditure-expenditure on voluntary retirement scheme Employees at time of retirement paid gratuity and leave encashment-Allowable as business expenditure-Sums payable-Payments brought within scope of disallowance with effect from 1-4-2002-Provision not applicable to payments prior to that date. Allowable without any condition of actual payment prior to such date. [S. 35DD, 43B(f), 260A]

S. 28(iv): Business income-Value of any benefit or perquisites-Converted into money or not-Assignment of trade mark-Not value of any benefit or perquisite arising from business-No case made out for taxing consideration for sale of trade marks as profits chargeable to tax.[S.41(1), 260A]

S. 12AA: Procedure for registration-Trust or institution-Charitable purpose-Registration cannot be denied merely because activities promote entrepreneurship, incubation or economic development; at the registration stage, CIT(E) is required to examine only charitable objects and genuineness of activities-High Court held the tribunal justified in directing grant of registration under section 12AA.[S. 2(15), 12AA(1)(b)(i), 260A]

S. 12AA: Procedure for registration-Trust or institution-Charitable purpose-Registration cannot be denied merely because activities promote entrepreneurship, incubation or economic development; at the registration stage, CIT(E) is required to examine only charitable objects and genuineness of activities-High Court held the tribunal justified in directing grant of registration under section 12AA-SLP of revenue was dismissed. [S. 2(15), 12AA(1)(b)(i), Art. 136]

S. 12A: Registration-Trust or institution-No satisfactory explanation or reasons for delay in filing application for registration-Contradictory stand-Order of Tribunal affirmed. [S. 10(23C)(iiiad),260A]

S.9(1)(vi): Income deemed to accrue or arise in India-Royalty-Sale or supply of software-No transfer of copyright, only copyrighted article supplied-Receipts not liable to tax as royalty under Article 12(3) of India-Singapore DTAA-DTAA-India-Singapore. [S.90, Art. 12(3)]

S. 2(22)(e) : Deemed dividend-Business advance-Utilised for payment of assessee’s personal tax under Kar Vivad Samadhan Scheme, and not for execution of job work; the same was rightly treated as deemed dividend-Order of Tribunal affirmed. [S.260A].

S. 2(14)(iii): Capital Asset-Agricultural land-Sale of land as agricultural land-AO treated it as capital gain-Only village officer certificate as proof-Failure to produce evidence-Order of Tribunal rejecting the exemption was affirmed-No substantial question of law. [S. 45, 260A]