S. 9(1)(vii) : Income deemed to accrue or arise in India – Fees for technical services (FTS) – Functional Service Agreement – Standardized support services – No managerial, technical or consultancy element – Not taxable as FTS- DTAA – India–Belgium . [S.9(1)(vi)), Art. 12(3)(a), 12(3)(b)]

S. 143(3) : Assessment – Principles of natural justice – Assessment order passed without considering reply to notice u/s 133(6) and by relying on non-existent case law – Artificial Intelligence (AI )- Quasi-judicial authorities cannot rely blindly on results generated by AI tools without independent verification- Breach of natural justice – Alternative remedy – Appeal was filed to avoid limitation- -Assessment quashed and matter remanded [S. 68, 133(6), 144B , 156, 271AAC, 274, Art. 226]

S. 69C : Unexplained expenditure -Bogus purchases – Estimate of alleged bogus purchases – No substantial question of law – Appeal of revenue was dismissed . [ S. 260A ]

S. 254(2) : Appellate Tribunal – Rectification of mistake apparent from the record – Subsequent decision of Supreme Court – Employee’s contributions (EPF/ESI) -Tribunal cannot invoke section 254(2) on basis of subsequent change in law – Order of rectification quashed . [S. 36(1)(va), 139(1), 143(1), 260A, Art. 226, 227]

S. 80G : Donation – Provisional registration – Delay in filing Form No. 10AB – Technical glitch – Tribunal and CIT(E) empowered to condone the delay – Mere enabling clause to apply funds outside India cannot be ground to reject registration – Delay condoned – Matter restored to CIT(E) for fresh consideration on merits.
[S. 11(1)(c), 12A(1)(ac)(iii), 80G(5)(iii), Form No. 10AB]

S. 254(1) : Appellate Tribunal-Powers-Tribunal remanding matter with cost-Cost of ₹50,000 imposed on small trader held to be harsh and unjustified-Order of Tribunal set aside. [S. 250(6), 254(2B), 260A]

S. 245 : Refunds-Setting off against tax due-Stay application- Pendency of appeal – Adjustment of refunds for AYs 2021-22 and 2024-25 against demand for AY 2017-18 is bad in law when appeal for AY 2017-18 is pending; such demand ought to be stayed till disposal of the appeal. [S. 246A, Art. 226]

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Credits pertaining to earlier years-Transaction explained-Reassessment notice and order disposing the objection was quashed. [S. 68, 147, 148, 148A(b), 148A(d), Art. 226]

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Income tax refund-Interest on excess payment of tax-Income derived from eligible business-Eligible for deduction- No substantial question of law. [S. 260A]

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Derived-Interest income on fixed deposits kept for contractual obligations and Interest on wrongful deduction of TDS refund-Eligible for deduction as profits derived from infrastructure facility. [S. 56 , 80IA(ii), 254(2), 260A, Art. 226]