S. 92C : Transfer pricing–Arm’s length price-Weighted average– Exporting carpets to foreign associated enterprise as well as unrelated parties-Variation of rates–AO is directed to apply weighted average of all transactions -Sale proceeds to be realised from the associated enterprises were in foreign currency, instead of applying the prime lending rate as the arm’s length price, interest at the LIBOR shall be considered as the arm’s length interest – The effect of the exchange gain or loss had to be given in computing of arm’s length price being the part of sale proceeds as well as comparable price. [S. 92CA]

S. 80IC : Special category States–Manufacture-Wooden Sleepers and planks made into planks-Amounts to manufacture-Entitled to deduction. [S. 2(29BA)]

S. 80HHC : Export Business-Claim was made in the return filed u/s.153A-Failed to include in the revised return inadvertently- Directed tom entertain the claim. [S. 153A].

S. 69C : Income from undisclosed sources—Bogus purchases—Hawala dealers-12.5 Per ent. of purchases to be brought to tax which is embedded in purchases.[S. 37(1)]

S. 69C : Unexplained expenditure–House hold expenses–Joint family- Addition is retracted to 50% of the expenditure.

S. 69C : Unexplained expenditure-Volkar committee report- Denied incurring and expenditure-Allegation of paying Kickbacks for participating in oil for food programme- Burden is on revenue–Merely on the basis of Volkar committee report- Addition is held to be not justified.

S. 69B : Amounts of investments not fully disclosed in books of account–Purchase of land-No evidence to show that the under consideration was paid–No additions can be made on presumptions.

S. 69A : Unexplained money-Capital gain-Penny stock-Sale of share-Bogus entries-Information from investigation wing-Addition is held to be justified. [S. 10(38), 45, Indian Evidence Act. S. 102]

S. 68 : Cash credits–Donations received was offered as income in income and expenditure account–Addition cannot be made as cash credits.

S. 68 : Cash credits-Share capital-Meagre income–Failure to establish from documentary evidence creditworthiness for making such huge investments and genuineness of transactions-Addition is held to be justified. [S. 133(6)]