S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Scope of total income-Taxation of income from permanent establishment-Effect of article 7 of India-United Arab Emirates Double Taxation Avoidance Agreement-Global income or profit irrelevant and not determinative-Article 7 does not expand its gaze or reach to overall operations or profitability of transnational enterprise-Activities of permanent establishment liable to be independently evaluated and ascertained-Article 7 does not restrict right of source State to allocate or attribute income to permanent establishment based on global income earned or loss incurred by cross border entity-DTAA-India-United Arab Emirates. [S. 5, Art. 5, 7]

S. 4 : Charge of income-tax-Capital or revenue-Income-Exemption from excise duty not under the purview of definition of income envisaged under S. 2(24)(xviii)-Such amount is thus not an income but capital receipt, not taxable under the Act-Entries in books of accounts not conclusive to determine income-No tax can be charged on an amount not actually earned.[S. 2(24)(xviii),5, 10, 145]

S. 2(47): Transfer-Capital loss-Reduction of share capital-loss due to reduction in number of shares pursuant to the court order-Change in redeemable value of shares amounts to extinguishment of rights in shares-No transfer within meaning of Section 2(47) of the Act. [S 45, 260A 1]

S. 276CC: Offences and prosecutions-Failure to furnish return of income-First offence under compounding guidelines-Supreme Court allows compounding-Letter F. No. 285/35/2013 IT (INV.V)/108, dated 23-12-2014. [S. 119, 139(1),139(4), 139(8), 148, 153A, Guidelines for Compounding Offences, 2014,(2015) 371 ITR 7 (St), 279(2), Art. 136]

S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Failure to remit tax deducted at source in time to Central Government-Assessee furnishing supporting documents to show that delay was due to late receipt of fee reimbursement from state Government-Explanation for delay plausible and sufficient cause established-tax deducted at source deposited with interest for delay payment-Criminal proceedings quashed-Supreme Court-Special Leave Petition dismissed. [S. 278AA, Code of Criminal Procedure, 1973, S. 482, Art. 136]

S. 271AAA: Penalty-Search initiated on or after 1st June, 2007-Undisclosed income-Tax and interest paid-All conditions satisfied-Not mandatory-Discretion means sound discretion guided by law-Conditions under section 271AAA (2) satisfied-No penalty is attracted. [S. 132, 143(3), 271AA(1) 271AA(2), Art. 136]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Capital gains-The part consideration on account of immovable property sold was not received as cheques dishonoured-The assessee did not offer Capital Gain to tax during the relevant assessment year-Pr. CIT found that the AO did not examine details regarding dishonour of cheques-Assessment Order to be erroneous in so far as prejudicial to the interest of the Revenue-Order of Tribunal is affirmed by High Court-SLP is dismissed-S. 263, Explanation 2(a). [S. 45, Art. 136]

S. 260A: Appeal-High Court-Substantial question of law-High Court asked to formulate the second question of law as proposed by the Revenue as one of the substantial questions of law where High Court had already admitted the first question of law. [S. 13(1)(c), Art. 136]

S. 237: Refunds-Direction to Revenue to refund excess tax paid by assessee-Such direction was duly complied with after adjusting self-assessed liability-SLP to be disposed of. [Art. 136]

S. 197 : Deduction at source-Certificate for lower rate-Non-Resident-Most Favoured Nation-Protocol providing for deduction at lower rate-Tax to be deducted at rate as provided in agreement-DTAA-India-Netherlands. [S. 9(1) (1), Art. 10, Art. 136]