S. 263 : Commissioner-Revision of orders prejudicial to revenue -Transfer pricing officer-Transfer pricing risk parameter, fell under para 3.2 of circular dated 10-3-2016 which required reference to TPO by Assessing Officer mandatorily – Revision is held to be justified. [S. 92CA]

S. 153A : Assessment–Search-Assessment was completed on the basis of return filed-No incriminating material being found during subsequent search, there could not be any assessment under section 153A/153C. [S. 143(3), 153C]

S. 80IC : Special category States-Profit on each undertaking has to be treated separately-Profits and losses of all eligible undertakings are not to be netted for purpose of calculating deduction – Each undertaking are to be taken on a stand-alone basis -Where the assessee availed deduction for a period of 5 years at rate of 100 per cent on substantial expansion , deduction for remaining 5 assessment years will be at rate of 30 per cent and not at rate of 100 per cent. [S. 80IC (2), 80IC(5), 80IC(7)]

S. 69C : Unexplained expenditure-Bogus purchases-Business of manufacturing and trading of tea machineries-PAN cards were furnished -Payments were made by account payee cheques -TDS was deducted – Parties were produced for examination -Addition cannot be made as unexplained expenditure.

S. 68 : Cash credits–Bank Account-Agricultural income-Bank statement is not considered as books of account and, therefore, any sum found credited in bank pass book cannot be treated as an unexplained cash credit-Matter remanded.

S. 68 : Cash credits-Share application money-Farmers- Identity, creditworthiness and also source of their investment was furnished -Addition is held to be not justified.

S. 54F : Capital gains-Investment in a residential house-Deduction cannot be rejected only on the ground that the builder failed to construct construction with in prescribed time. [S. 45]

S. 45 : Capital gains-Unexplained investment-Long term capital gains -Penny stocks -Sale of shares–Accommodation entries-Purchase and sale of shares had been made through Bombay Stock Exchange and through DMAT account-Sale proceeds to be assessed as long term and cannot be assessed as unexplained investment–Eligible exemption. [S. 10(38), 69, 131]

S. 40(a)(i) : Amounts not deductible-Deduction at source -Non-resident–Foreign agent-Commission–No permanent establishment in India–Carrying activities outside India-Payment is neither taxable nor can be treated as payment for rendering any managerial, technical or consultancy services [S. 9(1), 195]

S. 14A : Disallowance of expenditure-Exempt income–When there is no exempt income, no disallowance can be made. [R. 8D]