S. 132(4) : Search and seizure-Statement on oath–Statement made by the assessee that capitation fees paid by to the Engineering college–Held, cannot ipso fact make addition based on such statement–Held, no admission that engineering fees paid out of undisclosed income.-Addition held to be not justified [S. 158BB, 158BC]

S. 115JB : Book profit-Special economic zones-Even income arising from the business of a SEZ Unit, which is exempt u/s 10AA, is subject to MAT from AY 2012-13 onwards owing to the insertion of the proviso to s. 115JB(6)-Order of rectification is held to be valid. [S. 10AA, 154]

S. 92C : Transfer pricing-Arms’ length price-Most appropriate method vis-a-vis rule of consistency-TPO applied the RPM and CPM method for benchmarking international transactions- Tribunal however applied TNMM on the aggregated transactions observing that it has been consistently applied over the years-Justified.

S. 92C : Transfer pricing-Arms’ length price–Whether one entity is comparable to another–question of fact–No substantial questions of law.[S. 260A]

S.80G : Donations–Tribunal rightly remanded the matter to decide application of Section 80G–Relevant documents pointed out before Tribunal from which charitable nature could be deciphered – Remand by the Tribunal is held to be justified. [S. 12A]

S. 80 : Return for losses-losses can be allowed to be carry forward and set off only if return of income has been filed in the year in which the loss arise claiming such losses. [S. 74, 139(1)]

S. 73 : Losses in speculation business–Explanation-Whether trading in shares is the principal business of the assessee is a mixed question of facts and law-Matter remanded. [S. 71, 72, 254(1)]

S. 73 : Losses in speculation business–Explanation–business of purchase and sale of shares–Held, loss speculative in nature and cannot be set off against income from other source–Held, main income being from other source need not be seen in the year of set off.

S. 69C : Unexplained expenditure–Bogus purchases- Accommodation entries-Additional grounds-Approval is not available in the file-On the basis of affidavit filed by the AO , the Tribunal is presumed that the approval was obtained before issue of notice–100% addition is confirmed for alleged bogus purchases, considering the statements and material available on the record. [S. 153A, 153D]

S. 69 : Unexplained investments–Excess stock-Restriction of addition to a sum of Rs. 10 lacs by way of estimate and preponderance of probability cannot be said to be arbitrary and illegal.