S. 9(1)(i): Income deemed to accrue or arise in India-Business connection-Strategic Oversight services-Not royalty-Business income-Since hotel premises were at disposal of assessee in respect of its business activities, Tribunal had rightly held that assessee had a PE in India in form of fixed place through which it carried on its business-DTAA-India-UAE [S. 9(1)(vi), art. 5(2)(a), 12]

S. 4 : Income-Capital or revenue-Subsidy-Sales tax subsidy to be treated as a capital receipt-Department’s SLP dismissed.

S. 271(1)(c) : Penalty-Concealment-Bonafide error – Foreign exchange rate difference – Wrong claim of deduction- Corrected in the course of assessment – Merely making the wrong claim of deduction, penalty cannot be levied- Order of Tribunal deleting the penalty is affirmed. [S. 32(1)(ii),32(1)(iia), 43A ,143(3) , 260A]

S. 271(1)(c) : Penalty-Concealment-Furnishing inaccurate particulars-Order of penalty should clearly specify ground on which it is levied. [S. 260A]

S. 270AA : Immunity from the imposition of penalty, etc-No opportunity of hearing-No evidence to show misrepresentation of income or suppression of facts-Voluntary disclosure by the assessee and the failure of the authorities to properly apply the provisions, the court quashed the penalty order. [S. 264, 270A(9) 270AA(4), Art. 226]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Special Economic Zones-Subjective exercise-Order of Tribunal quashing the revision is affirmed.[S.10AA]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Survey-Stock-Order of revision is not valid.[S.133A]

S. 245D : Settlement Commission-Settlement of cases-Procedure-Application-Amendment by Finance Act, 2007-Settlement Commission called report-Failure to submit report with in time-Direction to proceed with application is valid-Writ petition of Revenue is dismissed. [S.245D(1), 245D(2B), 245D(2C), 245D(4), Art. 226]

S. 225 : Collection and recovery-Stay of proceedings-Pendency of appeal before CIT(A)-Deposit of 20 Per Cent. of demand-Liberty reserved to assessee to request Commissioner (Appeals) to consider merits of case expeditiously. [S. 226,250, Art. 226]

S. 194H : Deduction at source-Commission or brokerage-Discount price-Franchisees or distributors at discount price-Assessee Cannot be made to ask for information from franchisee or distributor and deduct tax at source-Not under obligation to deduct tax at source on income or profit component in payments received by franchisees or distributors from third parties or customers, or while selling or transferring prepaid coupons or starter-Kits to distributors-Not liable to deduct tax source-Obligation to deduct tax at source arises only when legal relationship of Principal-Agent is established-Obligation and time and manner in which tax to be deducted at source, fixed by statute which cannot be modified or postponed on concession by Department-Servant-Distributor-Franchisee-Independent Contractor [S.119, 204, Contract Act, 1872, S.186]