S. 37(1) : Business expenditure – Making charges paid to Goldsmiths allowable as the Assessee offered to tax the making charges collected from customers.

S. 36(1)(iii) : Interest on borrowed capital – Disallowance cannot be made as Assessee established that loan advanced at interest lower than interest paid on unsecured loans out of interest free funds.

S. 32 : Depreciation -Building – Partly used for business – Depreciation on Building is disallowable in proportion of let out to total constructed area of the building. [S. 38]

S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed exempt income notwithstanding Assessee’s suo-motu disallowance is more than exempt income. [ R.8D ]

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Distributor/reseller agreement and service agreement for support to end users and after sales services have to be read together to examine nature of income – Access to trademarks, intellectual property, technical knowhow, derivative works, brand features, confidential information, etc., while discharging its obligation under both agreements – Amount payable under distributor/reseller agreement was ‘Royalty’ -DTAA- India – Ireland . [S. 195, 201, Art. 12]

S. 4 : Charge of income-tax – Capital or revenue -Sales tax subsidy – Purpose of sales tax subsidy scheme was to attract people to invest and take part in industrialization of certain areas in the State, either by setting up new unit or expanding existing unit – Subsidy was a non-taxable capital receipt. [S. 28(i)]

S. 260A : Appeal – High Court – Place of assessment –Pilot employed by the Indian Airlines-Jurisdiction- Transfer of case -Reassessment -Residing in Mumbai and assessed in Hyderabad — Reassessment notices in Mumbai and Hyderabad — Participating in assessment proceedings in Hyderabad — Objection to reassessment notice issued in Mumbai cannot be raised for first time before High Court — Assessment proceedings is held to be valid. [S. 120(3) 124, 127, 143(3), 147, 148]

S. 271(1)(c) : Penalty – Concealment -International transaction — Transfer pricing —Explanation of Arm’s length price is found to be bona fide—Penalty cannot be imposed- Explanation 7. [S. 92C]

S. 254(1) : Appellate Tribunal – Duties- Reasoned speaking order which is the mandate as laid down by the Supreme Court in Kranti Associates Pvt Ltd v. Masood Ahmed Khan ( 2010) 9SCC 496 and Canara Bank v. V.K Awasthy (2005) SC 2090-Non speaking orders by Tribunal as well as Commissioner (E)- Natural justice is violated matter remitted to Commissioner (E) for fresh consideration.[S. 12AA]

S. 246A : Appeal – Commissioner (Appeals) – Appealable orders –Income from other sources – Cash credits -Assessee filing writ petition—Writ Court interpreting statutory provisions in favour of revenue—Assessee cannot file statutory appeal thereafter. [Art. 226]