S. 68 : Cash credits – Amount received from various depositors – Necessary enquiry relating to identity and creditworthiness of depositors not done by AO.

S. 50C : Capital gains – Full value of consideration – Stamp valuation – Lease hold rights – Transfer of capital asset for a consideration – Provision is applicable – Order of Tribunal is affirmed . [S. 2(14), 45, 48]

S. 10B : Export Oriented undertakings – Entitle deduction in respect of ‘Deemed Export’ of goods made through a third party – The word ‘Export’ read with Exim Policy would certainly include ‘Deemed Export’ within the ambit of ‘Export Turnover’. [S. 10B(2), 10B(9A)]

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record – Exposed to the odium of forum shopping- Order of Appellate Tribunal is reversed and cost of Rs.1.5 lakh is imposed on the assessee. [ S.68, 154 ]

S. 147 : Reassessment-Bogus share capital-Intimation-The AO cannot reopen without establishing prima facie that assessee’s own money has been routed back in form of share capital. While he can rely on the report of the Investigation Wing, he has to carry out further examination and analysis in order to establish the nexus between the material and formation of belief that income has escaped assessment. In absence thereof, the assumption of jurisdiction u/s.147 has no legal basis and resultant reassessment proceedings deserve to be set-aside. [S.143(1), 148 ]

S. 147 : Reassessment-Share application money-Merely because AO examined the transactions does not preclude him from subsequent inquiry if additional material prime facie shows that disclosures made by assessee were not true. Requirement of true and full disclosure runs through the entire assessment and does not end on filing of return. Reasons have to read as a whole- Mere non recitation of allegation regarding failure of full & true disclosure does not invalidate the reasons or the fact that the reasons are based on allegations of lack of true and full particulars. [S. 148]

S. 92C : Transfer pricing–Loan to Associated Enterprices-SBI rate is a local rate and LIBOR is a foreign rate, therefore, LIBOR rate should be preferred as against SBI local rate of interest.

S. 92C : Transfer pricing–Purhase of equity shares at value in excess of FMV is capital transation and does not give raise to any income Taxability under Transfer Pricing provisions of shares purchased at value in excess of FMV-As the transaction of purchase of equity shares is a capital transaction and does not give rise to any income, the transfer pricing provisions do not apply. Chapter X is a machinery provision- It can only be invoked to bring to tax any income arising from an international transaction. It is necessary for the revenue to show that income does arise from the international transaction. S. 2(24)(xvi) & 56(2)(viib) are prospective. [S.2(24)(xvi); 56(2)(viib), 92B]

S. 92C : Transfer pricing–Purchase and sale of shares-TPO was not justified in treting the transaction as loan and charging interest on notional basis–Corporate guarantee–Tribunal is justified in restricting the addition at 1 %of gurantee commission as against addition of at 5% of commission by the TPO. [S. 92B]

S. 80-IC : New Industrial undertaking–Special category States- Initial assessment year -An assessee availing exemption of 100% tax on setting up of a new industry, which is admissible for 5 years, and either on the expiry of 5 years or thereafter (but within 10 years) from the date when these assessees started availing exemption, they carried out substantial expansion of its industry would become ‘initial assessment year’, and from that assessment year, assessee shall been entitled to 100 per cent deductions from that year.