S. 5 : Scope of total income – Non-resident — Employees of Indian company sent on assignments – Employees residents of those countries and liable to tax on their worldwide income in those countries for period of their assignment income did not accrue in India and not chargeable to tax in India — Indian Company is not liable to deduct tax on salaries paid in India — Once employees returned and became residents Indian Company can give credit for taxes deducted during deputation outside India – DTAA- India – Germany – USA [ S. 2(45) 4, 5(2) 9(1)(ii) 15, 90, 192 , Art.4(1) , 23,25 ]

S. 5 : Scope of total income – Notional interest – Charging of notional interest for delayed remittance of collection made by its agent was held to be not justified [ S. 145 ]

S. 5 : Scope of total income -Real income- Non-Banking financial company — Mercantile system of accounting —Interest on doubtful debts cannot be assessed as income [ S. 145 ]

S. 5 : Scope of total income – Income – Accrual – Interest – Interest on Inter-Corporate Deposits ( ICDs) which had become non performing asset ( NPA) in terms of prudential norms by RBI , having not accrued not assessable on “accrual” basis, in the hands of non -banking financial company [ S. 145 ]

S.5: Scope of total income – Income chargeable to tax- Double taxation – Where the assessee has paid the income- tax at source in the State of Sikkim as per the law applicable at the relevant time in Sikkim, the same income was not taxable under the IT Act, 1961-.In a case of reasonable doubt, the construction most beneficial to the taxpayer is to be adopted [ S.4 ,80TT,256(1), Sikkim State Income Tax Rules, 1948, Art. 371F ]

S. 4: Income chargeable to tax- Share application money- The Interest accrued from share application money has statutorily required to be kept in separate account and was being adjusted towards the cost of raising share capital against public issue expenses . [ S. 56, 145 ]

S.4: Income chargeable to tax – Diversion of income by overriding title- Acted only broker -For determination of taxable income , written agreement is not relevant, conduct of parties can be considered accordingly only income that has actually accrued to the assessee is taxable. [ S. 5,145 ]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-DTAA-India & Belgium–Issuing gradation certificate, the payment cannot be characterize as fees for technical services, not liable to deduct tax at source-DTAA-India- Belgium [S. 9(1)(vii], Art.
12,13]

S. 4 :Charge of income-tax – Capital or revenue- Sales tax subsidy is a capital receipt. [ S. 264 ]

S. 4 : Charge of income-tax -VAT subsidy -Refund of value added tax was held to be capital receipt and not chargeable to tax . [ S. 2(24)(xviii) , 43(1) ]