S. 145 : Method of accounting-Rejection of books of account-No allegation from department that books of account of assessee either incorrect or incomplete-Gross profit ratio of one year not be applied to another year for determining profit of some of transactions of another year-Rejection of books is not justified. [S. 144]

S. 144C : Reference to dispute resolution panel–Draft assessment order passed in the name of amalgamating company, a non-existent entity on the date of passing such order–entire assessment proceedings based on such invalid draft assessment order are void ab initio and deserve to be quashed. [S. 292B]

S. 143(2) : Assessment–Notice-Notice issued by officer who was neither AO of assessee on the basis of address in PAN application nor AO of assessee as per address mentioned in return-Notice issued illegal. [S. 127, 143(3)]

S. 115JAA : Book profit-Deemed income-Tax credit–Demerger of SEZ units–Tribunal Order-MAT credit needs to be allowed to the assessee-not to the demerged company (SEZ units) even though the same arose on account of SEZ units. [Companies Act, S.391]

S. 92C : Transfer pricing-Arm’s length price-Interest on loans to AEs-Arm’s length rate of interest is the rate prevalent in the country where the loan is received/consumed and not the country in which the assessee advances loans to its AEs-Order of settlement commission is conclusive as regards the matter there in and not on other years. [S. 245D(4), 245I]

S. 92C : Transfer pricing-Arm’s length price–No express agreement shown to exist between assessee and AE for incurring ALP expenses for promotion of brand of AE–hence, AMP expenses cannot come within the purview of the international transaction-Determination of ALP of royalty at Nil is not sustainable-Applying rule of consistency-payment of royalty paid in earlier and subsequent years-has to be accepted.

S. 92C : Transfer pricing–AMP expenses incurred for brand building–not an international transaction–followed earlier order of tribunal in its own case–Matter remanded back-Income deemed to accrue or arise in India–Business connection–Premium for insurance policy was incurred by Adidas AG and it would only be entitled to receive claim of insurance and no income accrued to assessee–No business connection in India [S. 9(1)(i), 92B(1)]

S. 69A : Unexplained money-Assessee failing to discharge onus to prove lawful owner of cash found during course of Search-Cash in possession of Assessee to be treated as unexplained money. [S. 132]

S. 69 : Unexplained investments–HSBC in Switzerland-No addition in the absence of incriminating material found in the course of search. [S. 132, 153A]

S. 68 : Cash credits-Search and Seizure–Sale of property–Identity of the Purchaser-No incriminating material–Found during a search –Genuineness of transaction–No Cash credit–The settlement commission rejected the application–Merely on the basis of application before the Settlement commission–Addition cannot be made. [S. 153C, 245C(1)]