S. 11: Property held for charitable purposes-Accumulation of income-Benefit of accumulation cannot be denied where 85% of income is applied-Form No 9A-Justified in refusing accumulation as the specified purpose of accumulation was not specified. [S. 11(1)(a), 11(2)]

S. 10 (23C): Educational institution-Exemption-Return-Wrong ITR Form cannot defeat exemption [S. 139, 10(23C)(iiiad)]

S. 9(1)(vi): Income deemed to accrue or arise in India-Royalty-Managerial and administrative support services are not royalty where no know-how or intellectual property is transferred-DTAA-India-India Singapore.[Art. 7, 12]

S. 9(1)(i): Income deemed to accrue or arise in India-Business connection-Permanent Establishment-Attribution of Profits-Once transactions between the foreign enterprise and its Indian affiliate are accepted at Arm’s Length, no further attribution of profits is warranted, even assuming the existence of a Dependent Agent PE. (Articles 5(4), 5(5), 7 of India-USA DTAA [S.90, 92CA, Art. 5(4), 5(5), 7]

S. 2(22)(e) : Deemed dividend-Loan-More than 10% shares only on the first day of the previous year, and after transferring a substantial number of shares, its shareholding fell below 10% and continued below the 10% threshold for the remainder of the year-Addition as deemed dividend was deleted. [S. 2(22)(e), Expln. 3(b)]

S. 68 : Cash credits-Unexplained money-Cash deposits claimed as sale of scrap to unorganised dealers, accounted as “direct income”-No buyers’ details, tax collected at source information or Form 27EQ filed-Explanation unsupported-Matter remanded for fresh verification-Reassessment-Notice-Addition deleted by Commissioner (Appeals) on technical ground of non-mention in show-cause notice-Assessing Officer had in fact discussed issue and afforded opportunity-Matter remanded for fresh verification [S. 69, 69A, 115BBE, 147 , 148 , 206C]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Search and seizure-Seized documents showing unaccounted loan/investment transactions with repayments through billing account and large cash payments-Assessment made without proper enquiry-Assessing Officer taxing only commission instead of undisclosed income-Revision upheld. [S. 68, 69, 69A, 132, 153A]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Loan to associated enterprise in Bahrain-Benchmarking using US/European data inappropriate-Bahrain Central Bank’s prime lending rate reflects arm’s length rate-Upward adjustment unsustainable-Business expenditure-Disallowance-Payment for product certification services-Not fees for technical services-No tax deductible at source-Disallowance deleted.-Withholding liability arises only when income taxable in recipient’s hands-Royalty payable only on activation by end-user-Provision for royalty rightly allowed. [S.9(1)(vii) 40(a)(ia(195 R.10B]

S. 271D : Penalty-Acceptance of loans/deposits otherwise than by crossed cheque-Assessee claiming bank account used by others for demand drafts towards liquor licence applications-Affidavits of depositors stereotyped, not clarifying position at time of repayment-Matter remanded for fresh verification. [S. 269SS, 269T, 271E]

S. 263: Commissioner-Revision of orders prejudicial to revenue–Assessing Officer failing to consider applicability of minimum alternate tax provisions to assessee-company-Incorrect assumption of facts and incorrect application of law-Revision justified-Book profits-Exclusion from minimum alternate tax-No specific exemption for company under voluntary liquidation-Provisions of company law regarding preparation of accounts not relevant-ITR-6 pro forma recognising liquidation cannot override the Act-Section 115JB clearly applicable-Provisions of minimum alternate tax clearly applicable-Revision justified-Assessee-company undergoing voluntary liquidation citing impossibility of preparing statement of profit and loss-Held, profits and losses determinable under any system of accounts followed, enabling computation of minimum alternate tax.[S.115JB, Companies Act , 1956 , S. 551 , Companies Act , 2013, S. 348]