“Section 91(1)(vii)”
The decision most relied on for Section 91(1)(vii) is PCIT v. State Bank of Patiala (391 ITR 218), cited in 228 judgments on BharatTax.
Leading authorities on Section 91(1)(vii)
Income from shares and securities held by banks as stock-in-trade constitutes business income, hence Section 14A disallowance is not attracted. Further, any disallowance under Section 14A cannot exceed the actual amount of exempt income earned by the assessee during the year.
Section 14A of the Income-tax Act is not attracted, and dividend income cannot be disallowed, when shares are held as stock-in-trade by banks, with the primary purpose of trading for profit. This applies even if the shares were acquired through an IPO.
Payments for technical services are taxable as fees for technical services (FTS) if the services are rendered for the business in India and are technical in nature, made available to the assessee whenever requisitioned. Tax treaties with a 'make available' clause may exempt payments for software AMC if no technical knowledge, skill, or know-how is made available.
