S. 37(1): Business expenditure-Corporate Social Responsibility expenditure-Explanation 2 prospective-Expenditure incurred prior to assessment year 2015-16 allowable. [Expln. 2 to S. 37(1)]

S. 37(1): Business expenditure-Inventory loss and leakage-Consistent view in earlier years-Deduction allowable.

S. 37(1) : Business expenditure-Construction of building on leasehold land-No ownership of capital asset-Expenditure allowable as revenue expenditure-Delay of 59 days and 206 days was condoned. [S. 32(1), 254(1)]

S. 37(1): Business expenditure-Penalty for violation of law-Seizure of truck with wrong waybill-Not allowable.[Expln. 1 to S. 37(1), GST, VAT]

S. 36(1)(va): Any sum received from employees-Employees’ contribution to Provident Fund and ESI-Delayed payment-Disallowance upheld.[S.43B]

S.14A: Disallowance of expenditure-Exempt income-Rule 8D not applicable in absence of requisite data-Disallowance restricted to 10 per cent. of dividend income. [R. 8D]

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Non-resident-Composite contract-Supply of drawings and designs-Inextricably linked with offshore supply of plant and equipment-Not Fees for Technical Services-Supervisory services-Permanent Establishment-Receipts connected with supervisory PE-Taxable as business profits on net basis-Matter remanded–Supervisory services-Technical services-Supervisory fee taxable as Fees for Technical Services notwithstanding existence of Permanent Establishment-Reimbursement of expenses-Cost contribution arrangement without mark-up-No profit element-Not Fees for Technical Services-DTAA-India-Austria [S.9(1)(i), 195, Art.5, 7(4), 12]

S. 9(1)(vii): Income deemed to accrue or arise in India-Fees for technical services-Non-resident-India-Singapore DTAA-Management services-“Make available” test not satisfied-Receipts not taxable as Fees for Technical Services-Sale of software licences – Licence agreement transferring only right to use software-No services rendered-Receipts not taxable as Fees for Technical Services. DTAA [-India-Singapore [Art. 12(4)(b)]

S. 4 : Charge of income-tax-Capital receipt-Market Linked focus Product Scheme-Merchandise Exports from India Scheme (MEIS)-Reward under Foreign Trade Policy-Not a subsidy, grant or cash incentive-Sale proceeds of MEIS scrips not taxable.[S. 2(24)(xviii), 28(iiib), 56]

S. 271(1)(c): Penalty-Concealment-Furnishing inaccurate particulars-Defective notice-Mere disallowance of claim not sufficient-Penalty deleted.[S. 147, 148, 274]