S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Guarantee agreement with its subsidiaries-Other income-Taxed in contracting State-DTAA-India-Korea.[S.56 art. 23]

S. 4 : Charge of income-tax-Infrastructure projects-Nodal agency to implement certain schemes of State Government and unspent amount of grant given to assessee for carrying on infrastructure projects remained property of Government and had to be returned to Government as and when demanded-Grant cannot be assessed as income-Interest earned on deposits of surplus Government grants received by assessee to carry on its business activity of development of infrastructure projects was to be treated as part of grants and same could not be treated as income of assessee. [S. 28(i), 145]

S. 2(22)(e) : Deemed dividend-Advances from companies-Substantial shareholding-Lending money is the business-Advances cannot be assessed as deemed dividend.

S. 2(14)(iii) : Capital asset-Agricultural land-Vacant land-Sale to non agriculturist-Records maintained by State Government, certificate issued by Additional Tahsildar and Village Officer showed that the said land was an agricultural land and used for agricultural operations-Not capital asset-Not liable to be assessed as capital gains. [S. 45]

S. 271B :Penalty-Failure to get accounts audited-Failure to show reasonable cause-Levy of penalty is affirmed. [S.44AB]

S. 271B : Penalty-Failure to get accounts audited-University-Local authority-Failure to get accounts audited not to result in penalty but only in denial of exemption-Penalty not sustainable. [S. 10(23C)(iiiab), 12A(1)(b), 44AB]

S. 271(1)(c) : Penalty-Concealment-Notice not specifying the charge-Notice not valid. [S. 274]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Interest paid to customer-No details are filed in the course of assessment proceedings.[S. 143(3)]

S. 254(1) : Appellate Tribunal-Powers-Revised grounds-Additional evidence-Matter remanded.