S. 9(1)(ii) : Income deemed to accrue or arise in India-Salaries-
Non-resident-Salary income-Services rendered outside India while on deputation from Indian company-Assessee non-resident in India and tax resident of Australia-Salary received in India for employment exercised in Australia-Australian tax return accepted as evidence of residency-Tax residency certificate filed at appellate stage accepted-Exemption allowable-Scope of total income-Salary received in India for services rendered abroad-Not taxable in India when employment exercised outside India-DTAA-India-Australia. [S. 9(1)(ii), 15, 90, Art 15]

S. 80GGC: Contribution-Any person-Political parties-Political party not genuine, not existing online, not responding to official notices, not filing required financial reports to the Election Commission for several years, and its own return showing nil contributions received-No certified documents furnished-Political party an unrecognised political party-Deduction rightly disallowed. [S. 133(6)]

S. 10AA: Special Economic Zones-Computation of export turnover-Foreign currency expenditure not to be excluded from export turnover for computing deduction-Appeal to Appellate Tribunal-Failure by Commissioner (Appeals) to render finding on certain issues-Application pending before Commissioner (Appeals)-Direction to dispose of application.-Rectification of mistake-Order giving effect to Tribunal’s order-Assessing Officer’s failure to grant relief on several issues-Direction to dispose of pending rectification applications.-Deduction of tax at source-Credit for-Credit granted in original proceedings but not fully given in order giving effect to Tribunal’s order-Assessing Officer directed to verify and grant full credit.[S. 154 ,199, 254(1)]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Manufacturing of power distribution equipment-Import of raw materials-Transactional net margin method-No defect pointed out-Contract manufacturing not a proper comparable-No adjustment required-Information technology services from associated enterprise-Transfer Pricing Officer’s simultaneous use of comparable uncontrolled price and nil valuation contradictory-Assessee’s transfer pricing study acceptable-No adjustment called for.-Reimbursement of travel, lodging and employee cost on cost basis-Cost incurred without benefit improbable-Transfer Pricing Officer’s benchmarking proper. [S. 92]

S. 263 : Revision-Erroneous and prejudicial to Revenue-Assessee a trust running engineering colleges-Anonymous donations in cash and demand drafts found during search-Receipts offered to tax and taxed under section 115BBC-Principal Commissioner invoking section 263 to deny exemption on capitation fees relying on decision stayed by Supreme Court-Assessment framed after full verification-Twin conditions for section 263 not satisfied-Revision void ab initio-Precedent-Distinction between “stay” of order and “quashing of order”-An order stayed does not become operative from the date of the stay order, whereas quashing restores the position as it stood prior to the order quashed.[[S. 11, 12AA, 115BBC, 153A]

S. 153 : Assessment-Limitation-Final assessment order passed beyond time-limit prescribed under section 153(2)-No reference to Transfer Pricing Officer-Reassessment proceedings barred by limitation-Assessment order quashed. [S. 69, 144, 144C(13), 147, 148, 153(2)]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Cash deposits during demonetisation period-Assessing Officer having made detailed enquiries regarding source of cash deposit and accepted explanation after verification-Principal Commissioner cannot invoke revision merely because he believes deeper enquiry was required-Revision unwarranted. [S. 143(2), 142(1)]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Non-resident –”Make available”-Receipts for centralised information technology support, data management and maintenance services-No technical knowledge, skill or process made available-Recipient unable to independently manage IT environment without continuous recourse to service provider-Not fees for included services-Not taxable in India-Remittances to India-Discrepancy between figures in Forms 15CA and 26AS-Matter remanded for verification.-DTAA-India-USA [S. 9(1)(vii)(b) , 115A, 263 ,Art. 12(4)]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Non-resident-Permanent establishment-Liaison office treated as permanent establishment in earlier years-Assessee closing liaison office, no expatriate employees, evidence produced-Burden shifting on Revenue to rebut-No material brought by Department despite remand opportunity-No permanent establishment in India-No profits attributable-Royalty-Supply of software embedded in hardware-Facts same as earlier years where addition deleted following Engineering Analysis Centre of Excellence (SC)-Royalty not taxable-DTAA-India-USA [[S. 9(1)(vii) 144C art.5, 12]

S. 37(1): Business expenditure-Accrued or contingent liability-Assessee in real estate business-Provision for construction expenses made on fair estimate of amount required for completion of project, following matching concept-Amount spent in subsequent year through proper banking channels, no discrepancies noticed by Revenue-Provision to be allowed.[S. 145]