S. 9(1)(i): Income deemed to accrue or arise in India – Business connection – Royalty — Fees for technical services —Reimbursement of expenses- Held to be not taxable – DTAA-India – Singapore [ Art 5 (2) 12 ]

S. 4 : Charge of income-tax – Diversion of income by overriding title — Revenue sharing agreement- Holding company – Expenditure incurred towards services obtained from its holding company allowable as deduction .

S. 271C : Penalty – Failure to deduct at source – Non -resident – Short deduction of tax – levy of penalty is not justified when the assessee has deducted tax at source under S. 194IA instead of S 195 of the Act – Levy of penalty was deleted . [ S. 194IA ,195,201, 201(IA), 273B ]

S. 147 : Reassessment –With in four years- Client code modification- Reassessment notice is held to be bad in law. [ S. 68, 69C ,115BBE 143(1) 148 ]

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record – Capital gains – Distribution of capital asset -Retirement – Amount credited to Partner’s capital account prior to retirement for goodwill whether taxable as capital gains with cost of acquisition as per sec. 55(2)(a) as NIL – Miscellaneous application of the revenue is dismissed [ S.45(4) 55(2)(a) ]

S.147: Reassessment – Notice – Additional ground -AO can issue the notice u/s 143(2) only after filing of return of income in response to notice under section 148 of the Act – Prior issue of notice before such return is redundant therefore reassessment cancelled and quashed [ S.143(2) 148 151 292BB ]

S.147: Reassessment – Information from investigation wing – Objections not disposed – Material not confronted with the reasons recorded – Reassessment notice was quashed .[ S.148 ]

S. 45: Capital gains – Bogus capital gains from penny stocks- The AO has not discharged the onus of controverting the documentary evidences furnished by the assessee and by bringing on record any cogent material to sustain the addition as cash credits – Entitle to exemption- Addition as estimated commission income also deleted . [ S.10(38) 68 ]