S. 9(1)(i): Income deemed to accrue or arise in India – Business connection – AO considered assessee as supervisory PE – Estimated profit of 10% as profit rate on income earned and 25% as attributable towards PE – Held profits were taxable in India- ad-hoc percentage cannot be applied – matter set-aside to the Assessing Officer – DTAA -India – Germany .[ Art. 5, 7 ]

S. 4: Charge of income-tax – Receipt of certain amount from Government – credited to Income and Expenditure Statement under head ‘grant-in-aid’ for establishment expenses – issue of specific Accounting Standard was not dealt with by the AO, matter was to be remanded back to inter alia verify receipt of income and method of accounting adopted for the same – Form No 10- Condonation of delay – If CBDT condone delay in filing Form No 10 , the assessee would get consequential benefits under section 11(2) read with section 139(9) of the Act .[ S. 11,(2), 139(9), 145 ]

S. 2(42A) : Short-term capital asset – Capital gains – land received consequent to liquidation of company – Period of holding of land – from date of previous owner i.e., company – Assessable as long term capital gains- The land received as a result of liquidation of company – Does not amount to transfer of any capital asset within meaning of S. 50C of the Act .[ S. 45 ,46(2), 50C, 54F ]

S. 271F : Penalty – Return of income – Failure to furnish – Penalty cannot be levied if the estimated total income was less than maximum amount chargeable to tax – The basis of determination income in the assessment order cannot be said to be the basis for filing of return of income under section 139(1) of the Act- Penalty is deleted . [ S.139(1) , 144, 147, 148 ]

S. 271AAB:Peanlty -Search initiated on or after Ist day of July 2012-Not mandatory – Not specifying the specific charge – Penalty order is quashed . [ S. 132 ]

S. 271(1)(c) : Penalty – Concealment -Tax audit report mentioned the disallowance of expenses -Mistake while uploading the return -Department appeal is dismissed . [ S. 139, 260A, 274 ]

S. 270A:Penalty for under -reporting and misreporting of income – Incorrect reporting of interest income as appearing in 26AS – Enhanced claim under section 10(10) – Imposition of penalty is discretionary and not mandatory – Benefit of doubt must be given to the assessee- Penalty is deleted . [ S.10(10), 270A(6), Form No 26AS ]

S. 270A:Penalty for under -reporting and misreporting of income – Change of head of income – Income from house property – Business income – Penalty cannot bee levied for under reporting of income – [ S. 22, 24(a), 28(i), 270A(6)(a) ]

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Mistake in calculation of tax at slab rate instead mentioned in section 115BBE – Mistake can be rectified under section 154 -Revision proceedings cannot be invoked . [ S.115BBE , 143(3), 154 ]

S. 250 : Appeal – Commissioner (Appeals) – Procedure -No power to dismiss the appeal on account of non -prosecution – Order of CIT(A) is set aside to decide on merits .[ S.250(6), 251 ]