S. 10AA: Special economic zones -Assessee manufacturing different items in different units – No dispute about unit wise profitability declared by assesse – Remand report accepting cost of goods were reconciled – Addition made by AO to be deleted.

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Consideration paid for copyrighted article is not royalty and hence cannot be brought to tax either under Act or under DTAA

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Royalty income of assessee earned from OEMs situated outside India for the patents licensed to OEMs for manufacture of CDMA Network outside India was not chargeable to tax u/s 9(1)(vi)(c) .

S. 4: Charge of income-tax –Capital or revenue -Entertainment subsidy received under Uttar Pradesh Government scheme for promotion of construction of multiplexes is a capital receipt.[S.2(24)]

S. 2(15): Charitable purpose – Applicability of proviso to S. 2(15) of the Act is a question of fact and should be decided on facts of the case and no generalization is possible. [ S.11, 12 ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue -Bogus purchases- Hotel business- information from sales tax authorities -Hawala Traders – Assessee offering 15% of gross profit in the course of assessment proceedings with a view to buy peace and unending litigation which was accepted by the Assessing Officer without making any inquiry – Commissioner revising the order on the ground that on there was no discussion in the order of Assessing Officer and the Assessing Officer limiting addition under S.69C only on basis of GP ratio is held to be not justified -Tribunal affirming the revision order -High Court affirmed the order of the Tribunal . [ S.69C ]

S. 254(1) : Appellate Tribunal – Duties- Passing the Ex -parte order without ascertaining whether notice was duly served and assessee had avoided intentionally and deliberately to attend case of hearing would result in miscarriage of justice -Ex -parte order is seta side. [ R. 24 ]

S. 197 : Deduction at source – Certificate for lower rate – Certificate issued on the basis of tentative re-working of assessee’s accounts formed a prima facie opinion and suggested collection of tax at reduced rate of 1 per cent is justified – Not considering the projection of losses for reduced rate is help to be proper .[ S.197(2) ]

S. 80G : Donation -Renewal of certificate – Commissioner is not justified in denying renewal application during relevant assessment year without there being any new circumstances.[ S.11, 12A ]

S. 68 : Cash credits – Share capital -Identity of the share applicant was established – Additions cannot be made on surmises without conducting any further inquiry .