S. 90 : Double taxation relief-Non-resident-Tests-Fixed place permanent establishment-Assessee company providing remittances services to non-residents in USA-Liaison office set up in India under conditional permission granted by Reserve Bank of India-Reports to Reserve Bank of India not showing any violations of conditions-No material to establish that liaison office at disposal of assessee or belonged to assessee to conduct its business wholly or partly-Nature of activities of liaison office preparatory and auxiliary-Liaison office not permanent establishment of assessee.-Not exigible to tax in India-DTAA-India-USA. [Art. 5(1), 5(2), 5(3)]

S. 90 :Double taxation relief-A non-resident is entitled to the credit of Tax Deducted at Source (TDS) even if the income on which the tax was deducted was not offered to tax in India, provided the income is not taxable under the provisions of Section 90 of the Income Tax Act, 1961-Directed to refund of TDS along with interest. S. 143(3), 155(14). 264,Form 26AS Art. 226]

S. 86: Share of member of an association of persons-Income derived by various syndicates in which assessee was found one of the members, was required to be assessed in the hands of such syndicates only and a direct assessment in hands of assessee could not have been made in respect of such income derived by syndicates. [S. 2(31), 67A, 260A].

S. 80G : Donation-Registration of institution-Renewal of registration-Assessee granted registration under Section 12AA-Amount utilized for construction of Public Library is for charitable purpose-Failure to file form 10B-Denial of renewal of registration on that ground is not justified-Directed the respondents to grant renewal of registration under section80G(5)(vi) of the Act. [S. 2(15), 11, 12AA, 80G(5)(vi), Art. 226]

S. 69A : Unexplained money-Compulsory Scrutiny-Difference between the value of plant and machinery shown in the Balance Sheet on 31-03-2004 and opening balance shown on 01-04-2004 in the books of accounts-Assessee firm failed to explain the difference in the investments in plant and machinery-Addition is confirmed, [S. 119, 143(2), 144, 260A]

S. 68: Cash credits-Credit transfer received by other family members and group concerns could not be assumed to be assessee’s undisclosed income where AO failed to establish that assessee was de facto owner of bank accounts of various recipients. [S. 132, 260A]

S. 56: Income from other sources-Capital or revenue receipt-Capital work in progress-Interest earned prior to commencement of business on funds received in form of share capital for specific purpose of acquisition of coal mines-Part of capital cost and to be treated as capital work-in-progress.[S. 4, 57(iii), 260A]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Fees for technical services-Reimbursement to non-resident AEs-Revenue unable to prove that payments are FTS-Disallowance deleted. [S. 9(1)(vii), 195, 260A]

S.37(1): Business expenditure-Capital or revenue-Payments made by an assessee for the use of a logo or trademark for a particular period, aimed at business improvement/expansion, qualify as revenue expenditure.[S. 260A]

S.37(1): Business expenditure-Bogus expenses-Double taxation-Two constituent entities already offered to tax certain amounts out of receipts of aggregate amounts from assessee-Same amount not liable to be taxed in the hands of the assessee as it would amount to double taxation.[S. 260A]