S. 10B : Export oriented undertakings-New undertaking using building and machinery on lease from sister concern—”Transfer” Includes Lease—Not entitled to exemption.

S. 10B : Export oriented undertakings-Setting off of carried forward losses-Matter remanded to Assessing Officer to decide afresh in light of decisions. [S. 10A]

S. 10A : Free trade zone -Expenses incurred in foreign currency to be excluded from export turnover and total turnover— Compensation received on termination of export agreement constituted profits of business—Supply of software to another exporter—Entitled to Exemption-Loss Carried Forward From earlier years can be set off against income of current Year— Amendment by Finance Act, 2000.

S. 10(23G) : Infrastructure undertaking-Long term finance-Interest-Liquidated damages fall within the purview of word interest-Entitle to exemption. [S. 2 (28A)]

S. 10(22) : Educational institution-Institution Should exist solely for educational purposes—Income from educational institution utilised to purchase immovable property in names of members of society—Not entitled to exemption.

S. 9(1)(vi) : Income deemed to accrue or arise in India–Royalty-The insertions of Explanations 5 & 6 to s. 9(1)(vi) by the Finance Act 2015 w.r.e.f. 01.04.1976, even if declaratory and clarificatory of the law, will not apply to the DTAAs. The DTAAs are a bilateral agreement between two Countries and cannot be overridden by a unilateral legislative amendment by one Country–Not liable to deduct tax at source -DTAA- India –Nether lands. [S. 195, Art.]

S. 271AAB : Penalty-Search initiated on or after 1st July, 2012–Levy of penalty is not mandatory – Merely on the basis of surrender the levy of penalty is not justified. As regards cash found in the Couse of search which was not disclosed in the books of account, levy of penalty was confirmed.

S. 254(1) : Appellate Tribunal Powers-Stay-Penalty–Concealment– Quantum appeal pending before Tribunal–AO directed not to pass final penalty order – However, penalty proceedings not stayed. [S. 271(1)(c)]

S. 254(1) : Appellate Tribunal–Powers-Remand with Directions– Consequential enhancement is held to be valid. [R. 8D]

S. 148 : Reassessment–Notice–Return filed in response offering lesser income- Assesse cannot raise fresh independent claims having effect of reducing income already declared. [S. 147]