S. 92C : Transfer pricing – Arms’ length price – DRP directed the TPO to give working capital adjustment using OECD methodology and to apply SBI Prime Lending rate as interest rate and hence the impugned Order passed did not require any interference.
S. 92C : Transfer pricing – Arms’ length price – A company having a calendar year ending, cannot be compared with the assessee having a financial year ending notwithstanding functional similarity between two companies.
S. 80-IC : Special category States– Support services provided to IT companies by the assessee through its own staff is eligible for deduction .
S. 69C : Unexplained expenditure –Bogus purcahses -Estimation of profits embedded in purchases at 12.5% is reasonable when the assessee failed to prove the purchases to be genuine and also failed to produce the selling parties during the course of the assessment proceedings. [ S.133(6),145 ]
S. 68 : Cash credits – Share capital- Identity , genuiness and credit worthiness was probed by filing PAN master data , Return ackowledge ment return etc. Deletion of addition was held to be justified .[ S.133(6) ]
S.40(a)(ia):Amounts not deductible – Deduction at source – Contractor – The matter was restored back to the AO to verify as to whether tax was deposited by the parties or not. [S.194C(6)]
S. 37(1) : Business expenditure – Bogus purcahses -The assessee was doing major works for Govt. Departments and the said Departments also confirmed the authenticity of work and merely because the assessee could not produce the parties, purchases could be held as non-genuine.Disallowance was confiremd of only Rs 5 lakhs . [ S.131 , 145 ]
S. 37(1) : Business expenditure – Circular No. 5/2012 dated 01-8-2012 ( 2012) 346 ITR 95(St) prohibiting pharmaceutical companies from giving any monetary benefits to doctors, was applicable from assessment year 2013-14 onwards- As the addition was deleted consequently penalty levied was also deleted . [S.271(1)(c)]
S. 14A : Disallowance of expenditure – Exempt income – The AO has to first record satisfaction having regard to accounts of the assessee that the claim made by the assessee with regard to non-incurrence of any expenditure for the purpose of earning income is incorrect before proceeding to make any disallowance. [ R.8D ]
S. 14A : Disallowance of expenditure – Exempt income – No disallowance can be made if no exempt income is earned. [R.8D ]