“Section 94(2)”

An assessee found to be the owner of bullion, etc., must explain its source. The Income Tax Officer must find the assessee to be the owner, not merely in possession.

Expenditure incurred by a company for the purpose of its business, including expenses to fulfill statutory legal obligations or those related to an erstwhile business post-transfer, is allowable as revenue expenditure under Section 37 of the Income-tax Act.

The Delhi Tribunal, in citing Boston Consulting Group, examines the taxability of fees for services, particularly concerning whether such fees constitute 'fees for technical services' under Indian domestic law or are covered by a tax treaty. The decision likely clarifies the application of treaty provisions over domestic law for certain service fees when determining the taxability of a foreign enterprise in India.

The Assessing Officer (AO) has the power to disturb the valuation of shares provided by the assessee's chartered accountant, even if Rule 11UA(2) is followed. If the AO doubts the valuation report, they are not necessarily bound to refer the matter to the Valuation Officer and can adopt a different method to determine the fair market value.

The Bombay High Court clarifies that for the purpose of Section 115J (now Section 115JB), the total income of an assessee is to be computed first under the Income-tax Act, and then compared with the book profit.

For availing deduction under section 80-IA, the 'infrastructure facility' does not necessarily need to be owned by the assessee. The assessee was held to be a developer, eligible for deduction under section 80-IA(4).

A new undertaking is not deprived of its status as a separate and distinct entity merely because it is to a certain extent dependent on an existing unit, if the nature of the technology and mechanism of production warrants it.

Disallowance of expenditure under Section 14A requires a proximate cause establishing the relationship between the expenditure and the exempt income. The expenditure must have a real, dominant, and immediate relationship with income not forming part of the total income.