S. 9C : Transfer pricing—Functionally Different-Cannot be considered for comparable.

S. 92C : Transfer pricing-TNMM- Once a comparable was found functionally similar and further authentic and reliable financial data were available relevant to accounting period of assessee then merely comparable had different FY, it could not be excluded- TP adjustment made on outstanding receivable beyond 30 days credit period applying interest rate of 14.88% p.a. and computing interest receivable is held to be justified.

S. 92C : Transfer pricing-Arms length price-Items like spares, accessories, batteries are used by assessee in discharge its obligation of warranty or replacement of damaged items in transportation then no transfer pricing adjustment required to be made in respect of Purchase of finished goods and spares.

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits–Logistic solutions-Airline companies – Identity of payee and genuineness of transaction is not doubted – Disallowance was deleted.

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Commission-Incentive to retailers-Not liable to deduct tax at source. [S. 194H]

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident–Providing services of AMC and installation, commissioning services, for equipment supplied by its group entities to customers in India – Not liable to deduct ta at source- DTAA-India –USA [S.195, Art .12 (4)]

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident–Airfreight-Payments on behalf of its clients as Clearing and Forwarding Agent which were reimbursed-Expenditure was not claimed as deduction- No disallowance can be made. [S.44B, 172]

S. 10AA : Special economic zones-Merely because consideration was received after 6 months from close of FY, deduction could not be denied to assessee on such sum—AO was directed to consider a sum as export turnover – Deduction cannot be allowed on unbilled revenue as it does not qualify the definition of export and export turnover. [S. 10A(3)]

S. 9(1)(vi) : Income deemed to accrue or arise in India–Royalty-fee for technical services-Income from offshore sale of products could not be construed to be FTS or royalty liable to tax in India–DTAA-India-Australia.

S.92C: Transfer pricing—Selection of comparables—Functionally different—IT enabled services- TNMM – Software developer could not be functionally comparable with a pure captive service provider – Foreign exchange gain or loss is part of operating expenditure/ income.