“Section 209(1)(a)”
The decision most relied on for Section 209(1)(a) is CIT v. Shivanand Electronics (209 ITR 63), cited in 100 judgments on BharatTax.
Leading authorities on Section 209(1)(a)
The requirement to file an audit report along with the return of income for claiming specified deductions, such as under Section 80J or 80-IA, is directory and not mandatory. Such an audit report can be filed at any time before the assessment is framed or completed under Section 143(1).
Membership fees and subscription amounts received by a trust or society from its members are not considered 'voluntary contributions' under Section 12 of the Income-tax Act, as they are not gratuitous payments or gifts but are made with consideration.
An Indian agent providing marketing services, without the authority to conclude contracts on behalf of a foreign company, does not constitute a Dependent Agent Permanent Establishment (DAPE) for the foreign company in India under DTAA provisions.
The proviso to section 209(1) of the Income-tax Act, 1961, inserted by the Finance Act, 2012, which clarified the liability of non-residents to pay advance tax, has prospective effect only. Consequently, non-residents are not liable to pay interest under section 234B for assessment years prior to AY 2012-13.
When contractual obligations are for an entire project, only the income reasonably attributable to operations carried on in India is deemed to accrue or arise in India and falls within the tax net. This principle applies even in consortium arrangements where members have broader contractual roles, and income from supply of equipment should be characterized appropriately.
A non-resident entity's activities in India are assessed for Permanent Establishment (PE) under Double Taxation Avoidance Agreements, considering types like fixed place, construction, and agency PE, and the applicability of presumptive taxation under sections such as 44BBB.
Transport subsidies received by a business operating in a backward area, being inseparably connected with the ongoing business and incidental to its expenditure, constitute a revenue or trading receipt taxable under the Income Tax Act.
Deductions under section 80IA are to be computed with reference to the profits of each eligible unit independently, without considering the profits or losses of other units. Each eligible unit is treated as a standalone entity for the purpose of calculating this deduction.
