S. 44DA : Non-residents-Royalties-Computation-Permanent Establishment-All contracts negotiated and signed in India by branch head-Activities under each contract in India for more than six months-Income earned from contracts connected to Permanent Establishment in India-Taxable at 40 Per Cent. on net income basis in accordance with RBI guidelines.
S. 44BBB : Foreign companies-Presumptive tax-Turnkey power projects-Income from offshore supplies not liable to tax in India-Books of account not required to be maintained-Fixed percentage of receipt deemed to be income-Income from power projects to be taxed on cash basis and not on mercantile basis-DTAA-India-Japan. [Art. 7(6)]
S. 44BB : Mineral oils-Computation-Presumptive tax-Non-Resident-Prospecting for, or extraction or production of mineral oils-Receipt on account of reimbursement of expenses-Amounts received towards mobilization advance-Includible in gross receipts-Service tax receipts-Excludible.
S. 43B : Deductions on actual payment-Employees’ contribution to Employees’ State Insurance and Provident Fund-Deposit after date specified in relevant statute-Before due date for filing return-Amendment by Finance Act, 2021 is not applicable for earlier years-No disallowance can be made-Precedent-Authorities bound to follow decision of jurisdictional High Court. [S. 36(1)(va), 139(1), 143(1)]
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Merely because the liability is outstanding in the books for long period of time when there has been no supervening development nullifying the liability to pay between the parties-such liability cannot cease to exist.
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Membership and subscription charges-Not liable to deduct tax at source.
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment to consolidator for right in land-Not liable to deduct tax at source-Cost with regard to AY. 2008-09 cannot be disallowed in the AY. 2013-14. [S. 37(1), 194H]
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Certificate submitted was not in prescribed form-Violation of procedural provision-Matter remanded. [S. 201(1)]
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Upon failure on the part of the Assessee to provide reconciliation of expenses, its nature and TDS deductions, the alternate plea to allocate the expenses so disallowed over the STPI units of the assessee while computing the relief under section 10A was accepted.
S. 37(1) : Business expenditure-Telephone expenses-Club membership fee-Allowable as business expenditure-Entertainment Expenses-Expenses incurred on cigarettes and wines not allowable.