“Section 7(6)”

If a Dependent Agency Permanent Establishment (DAPE) is remunerated at arm's length based on transfer pricing principles, no further profits can be attributed to the foreign enterprise. The principles of profit attribution under DTAA Article 7 are pari-materia to Section 9(1)(i) of the Income Tax Act.

A statute prescribing a procedure using negative language (e.g., 'in no other manner') imposes absolute requirements, and failure to comply will invalidate the entire proceeding.

A payment of bonus or commission is allowable as a business deduction under Section 36(1)(ii) unless it constitutes a distribution of profits or dividends, thereby distinguishing payments genuinely for services from those merely intended to escape taxation.

Reopening assessments beyond four years is permissible when specific information regarding foreign bank accounts is received, provided due process and prior approval are obtained.

For an activity to be considered 'business' under income tax law, it must occupy time, attention, and labour with a normal object of making profit. Profit motive is an important factor, and the activity should involve a continuous course of dealings between two or more persons.

Depreciation on goodwill arising from amalgamation is not admissible to the amalgamated company if no goodwill was admitted in the hands of the amalgamating company, applying Explanation 7 to Section 43(1) and the Sixth Proviso to Section 32(1)(ii).

An assessment order cannot be held as erroneous and prejudicial to the revenue if the Assessing Officer conducted extensive inquiries and was satisfied with the assessee's claim during assessment proceedings.

The Mumbai ITAT held that payments made by a resident Indian company to a non-resident company for software services constitute fees for technical services (FTS) taxable in India under Section 9(1)(vii) of the Income Tax Act, 1961, unless a Double Taxation Avoidance Agreement (DTAA) provides otherwise.