S. 10AA : Special economic zones-Export–Entitle to deduction stand alone basis–Deduction cannot be denied only on the ground that non filing of audit report along with the return.[S. 80A(5)]

S. 10(37) : Capital gains-Agricultural land–Compensation received on compulsory acquisition – Price fixed upon negotiation–Entitle to exemption. [S. 45, Land Acquisition Act, S. 4, 6, 9]

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection–Water supply augmentation project and oil pipeline project etc- Payment received during year was attributable to PE in India, same was taxable as business profit-DTAA-India–Russia [Art. 7, 12]

S. 5 : Scope of total income–Salary-Seafarer–Rendered services outside India- Salary is not taxable in India. [S. 15]

S. 4 : Charge of income-tax -Deposit with a bank to avail credit facilities for importing equipments for setting up new plant- Interest earned was to be treated as capital receipt. [S. 56].

S. 2(14) : Capital asset–Capital gains-Land acquisition–Compensation received from land acquisition under National High Ways Act, 1956 is exempt from tax-Matter remanded to the AO to decide the matter after taking in to consideration issued by CBDT [National High Ways Act, 1956, RFCTLARR Act, 2013]

Digest – 2019 – Direct taxes – Section wise – January – 3-9-2019

Prohibition Of Benami Property Transactions Act, 1988,
S.2(9) (c ) : Benami transaction — Notice and attachment- High demonitised notes – Preliminary objection not raised in reply to show-cause notice — No statutory provision for passing of separate order against objections raised — Provisions not pari materia with reassessment under Income-tax law — Objection of assessee is unsustainable. [S. 19(1)(g) ,24(2), 24(3) , ITAct, S.147 148,153A ]

S. 254(1) : Appellate Tribunal – Duties- Estimate of cost of construction-Income from undisclosed sources – Order passed confirming the addition without assigning the reasons is held to be not justified .[ S.69 ]

S. 153 : Assessment – Reassessment – Limitation –Revision- When an is set aside or cancelled -Fresh assessment can be made only before expiry of two years from the end of the financial year in which the order u/s 263 was passed – Order giving effect-Though no limitation is prescribed the order should be passed within reasonable time – Delay of eight and half years is held to be not valid in law .[ S.263 ]