S. 92CA : Reference to transfer pricing officer – AO is not bound to pass draft assessment order in tune with arm’s length price fixed by TPO-AO having rejected valuation of shares made by TPO, made addition to assessee’s income in respect of excess price paid for buy-back of shares-Writ was dismissed-liberty is given to the to the assessee raise all the issues before the Dispute Resolution Panel. [S. 2(22) (iv), 46A,56(1), 92CA 94, 115QA, 144C, Companies Act, 1956, S.72A, R.11UA, Art. 226]
S. 92C : Transfer pricing-Arms’ length price-Services of application design, software engineering and technology cannot be compared with a company providing software support services.
S. 92C : Transfer pricing–Transportation cost-Not able to establish that cost of transportation in comparable case was lesser than assessee-Adjustment is held to be valid. [S. 260A]
S. 92C : Transfer pricing–Guarantee commission-Comparison can be made between guarantees issued by commercial Banks as against a corporate guarantee issued by a holding company to benefit of its Associated enterprises-Bench mark fixed by TPO at 3 percent is held to be correct. [S. 92CA(3), R.10B]
S. 80P : Co-operative societies-Primary Agricultural Credit Society –Interests from loans and advances-Matter remanded [S.80P(2)(a)(i), Kerala Co-operative Societies Act, 1969.]
S. 80IB(11A) : Undertaking–Business of processing , preservation and packaging of fruits or vegetables-Business of manufacturing and exporting honey is eligible to claim deduction.
S. 69C : Unexplained expenditure–Purchase of land jointly with another person-Assessee could be asked to explain only 50% of his share and not source of other person who has invested another 50%.
S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record – Unexplained money –Gifts- Admission by partner- Addition is held to be justified- Rejection of miscellaneous application is held to be justified . [ S. 69A, 132(4), 158BB, 260A ]
S. 69A : Unexplained money–Cash deposit in savings bank account of Rs. 37 lakhs-Sales as per return was only Rs.9.65 lakhs-Addition is held to be justified.
S. 69 : Unexplained investments–Purchase of land-Addition made on the on the basis of statement and agreement of purchase is held to be valid.