S. 10AA: Special Economic Zones-Newly established units-Allocation of head office expenses-Common expenses having direct nexus with eligible unit-Allocation in ratio of turnover held justified-Transfer of goods to eligible unit-Market value-Notional gross profit adopted by Assessing Officer-Matter remanded [S.10AA(9), 80-IA(8)]

S. 10AA : Special Economic Zones-Export-Interest income forming part of business profits-Eligible for deduction.

S. 10A: Free trade zone-Export profits-Deduction-Export proceeds realised in convertible foreign exchange-Matter remanded for verification-Communication expenses to be excluded from both export turnover and total turnover-Foreign exchange fluctuation gain-Already offered to tax-Matter remanded to avoid double taxation.[S. 144C]

S. 10(23D): Mutual Fund-Income-Exemption-Scheme vested in UTI Mutual Fund-Separate SEBI registration for each scheme not necessary-Exemption allowable. [Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, Sch. II, Entry 37]

S. 9(1)(vii): Income deemed to accrue or arise in India-Non-resident-Warehousing charges paid outside India-Not Fees for Technical Services-No liability to deduct tax at source-DTAA-India-USA [S. 195, Art. 12]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Non-resident-Marketing services-Sales commission-Not Fees for Included Services under India-USA DTAA-Not taxable in India-DTAA-India-USA-Delay of 89 days was condoned. [S. 254(1) Art. 12(4)(b)]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Non-resident-Technology and strategic information system services rendered outside India-No right to use software or intellectual property granted-Receipts not taxable as royalty-Management service fees-General management services rendered to group companies-Neither royalty nor Fees for Technical Services-Not taxable in India-DTAA-India-France. [S. 9(1)(vii), Art. 12]

S. 260A: Appeal – High Court – Assessment – Once a Resolution Plan is approved under section 31 of the Insolvency and Bankruptcy Code, all statutory dues, including income-tax claims, which do not form part of the approved Resolution Plan stand extinguished. Consequently, any appeal by the Revenue seeking to revive such tax demand becomes academic, and no substantial question of law arises. [S. 143(3), Insolvency and Bankruptcy Code, 2016, S. 31 ]

S. 276CC: Offences and prosecutions – Failure to furnish return of income – Prosecution for failure to furnish the return of income is not maintainable where, on regular assessment, the tax payable after giving credit for TDS and advance tax does not exceed the statutory limit.- Where the assessee is entitled to a refund, and there is no loss of revenue, continuation of criminal prosecution amounts to an abuse of the process of law. [S. 139(1), 142(1), 147, 148, Art. 226 ]

S. 69C: Unexplained expenditure -Bogus purchases -Where the sales, quantitative stock records and consumption of goods are accepted, and the purchases are supported by invoices, delivery challans, bank payments and stock records, merely because the supplier is found to be non-genuine, the entire purchases cannot be disallowed- Only the profit element embedded in such purchases is liable to be taxed. In the case of a trader in ferrous and non-ferrous metals, estimation of profit at 2% of the disputed purchases is reasonable, and application of 12.5% is unjustified. [S. 145 ]