S. 36(1)(iii) :Interest on borrowed capital-Installation of cell site towers Provision did not contemplate distinction between capital borrowed for revenue or capital purpose-Expansion of business-Matter remanded to Assessing Officer to examine aspects pertaining to common pool of funds as framed by Tribunal and cell sites actually brought into use. [S. 37(1), 260A]

S. 32 : Depreciation-Installation of cell site towers-Lease agreement-Accounting Standard 29-Entitle to depreciation.[S. 260A]

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-
Deduction of tax at source-Transactions entered into pertaining to assessment years prior to introduction of Explanation in section 9(1)(vi)-Explanation 4 introduced in section 9(1)(iv) by Finance Act, 20121 cannot have retrospective effect and payment not royalty liable to deduction of tax-Appeal of revenue was dismissed. [S. 9(1)(vi), Expln. 4, 37, 40(a)(ia), 195(2).

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Non-resident-Copy right-Subscription fees-SLP of revenue dismissed-DTAA-India-Singapore. [Art. 12(4)(b). Art. 136]]

S. 4 : Charge of income-tax-Capital or revenue-Excise duty exemption Purpose test formulated by Supreme Court Excise duty exemption granted for purpose of industrialisation and generation of employment in States-Excise duty exemption capital receipt-Book profit-Excise duty exemption availed being in nature of capital receipt and not chargeable to tax under normal provisions cannot be added in book profit. [S.115JB]

S. 4 : Charge of income-tax-Income or capital-Sales tax incentive received from State Government under West Bengal Industrial Promotion Scheme-Capital receipt-Appellate Tribunal-Power-The Tribunal has the power to entertain a claim of deduction not claimed before the Assessing Officer by filing revised return. [S. 139,254(1)]

S. 4 : Charge of income-tax-Forfeiture of earnest money arising out of agreement to sale a property is not liable to tax–Income from other sources-Capital receipt-Advance received under agreement to sell-Forfeited-Receipt would go to reduce cost of acquisition of asset-Cannot be assessed as income from other sources-Appeal of revenue dismissed. [S. 51, 56(2)(vi), Art. 136]

S. 45 : Capital Gains – Sale of Film Rights – Transfer of bundle of rights in 31 cinematographic films held to be transfer of capital assets – Consideration received taxable as capital gains and not as business income. [ S.2(11)(B), 2(14) 28(i), 28(va) 55(2)(a) ]

Direct Tax Vivad se Vishwas Act, 2020

S. 3: Dispute resolution-Fundamental aim to settle matters and issues that existed on the relevant date; not to create liability on issues on which parties were already ad idem-Failure to make requisite disclosures does not defeat reliefs granted in assessment-Designated authority may rectify apparent mistakes in Form 3-Beneficial statutes to be interpreted liberally. [S. 4, 5, Form No. 3; Art. 226]

S. 271(1)(c) : Penalty-Concealment-Capital gains-Evasion of tax-Construction business-Mere filing of capital account does not amount to full and proper disclosure-Order of Tribunal affirming the penalty was affirmed. [S. 147, 260A, Expln. 1, 271(1)(c)]