S. 10 (23C) : Educational institution-Assessee has 12 units-Annual receipts of each of the institutions of the Assessee was less than the prescribed limit under the provision-Entitled to the exemption-Directed to give effect to petition filed under S. 154 of the Act. [S. 10(23C)(iiiad), Form No 10BB]

S. 10 (23C) : Educational institution-No disallowance can be made buy applying provisions of section 11 and 12-Grant in aide-Could not be considered as assessee’s income-Exempt from tax-Depreciation-Not claimed cost incurred on acquisition of fixed assets as application of income-Depreciation is allowable. [S.10(23C)(vi), 11, 12, 32]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Subscription fee-Fees for technical services-Subscription payments, training and professional fees-No transfer of technology-DTAA-India-Netherlands [Art. 12]

S. 9(1)(ii) : Income deemed to accrue or arise in India-Salaries-Held, the Assessee, being a non-resident, has rendered services outside India, the salary cannot be taxable in India-DTAA-India-Austria [S. 5,15, Art. 15]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent Establishment-Off shore supply of goods and equipments-Out side India-No Permanent Establishment-Not taxable in India-DTAA-India-Thailand [Art. 5]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent Establishment-Supply and delivery of equipment and supervision, installation, erection and commissioning activity-Single composite contract-Assessee had PE in India-Income attributable to Indian PE from said contracts is taxable in India-Matter remanded to the file of the AO for computation-DTAA-India-Germany. [Art. 5, 7]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent establishment-Agency PE-Indian subsidiary-Advertisement sales agent-Not dependent PE-Not taxable in India-DTAA-India-Mauritius [Art. 5(4)]

S. 4 : Charge of income-tax-Interest income-Temporarily parked / deposited with banks on fixed deposits-Prior to commencement of business-Capital receipt-Required to be set off against pre-operative expenses. [S. 145]

S. 271D : Penalty – Takes or accepts any loan or deposit – Share application money in cash-Looking into the object and purpose of S. 269SS and 269T read with the Explanation defining the words “loan and deposit”, the share application money can neither be said to be loan nor a deposit-Order of Tribunal deleting the penalty is affirmed. [S. 269SS, 269T, 271E, 260A]

S. 271(1)(c) : Penalty – Concealment – Capital gains – Higher valuation as per S.50C – Merely because higher valuation – Levy of penalty is not valid. [S. 45, 50C, 245C, 245D, Art. 226]