S. 92C : Transfer pricing-Arm’s length price-Adjustment of interest-Foreign subsidiary-Corporate guarantee-Loan to Associated Enterprises- Delay in realizing sale proceeds from Associated Enterprises – Adjustment should be made at average LIBOR rate existing at that time, i.e., at 0.79 per cent, instead of LIBOR +2 per cent. [S. 92B]
S. 69C : Un explained expenditure-Cash payments-Slips found during search-Since there was no material to substantiate assumption that slips denoted amounts outside cash book of assessee, addition was held to be not justified. [S. 132]
S. 69 : Undisclosed investment -Deletion of addition by the Tribunal is held to be appreciation of evidence -No substantial question of law. [S. 260A ]
S. 69 : Unexplained investments–Cash payments-diary seized from sister concern -Since no other evidence was recorded during search nor concerned person against whose name entry in diary appeared was examined, said addition was to be deleted. [S. 132(4)]
S. 68 : Cash credits- Bank details and other particulars were furnished–Merely on the basis of report addition cannot be made -Deletion of addition is held to be justified. [S. 260A]
S. 45 : Capital gains-Business income-Sale of shares-Only 10 scripts-Assessable as capital gains. [S. 28(i)]
S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits-Payment made to notified dealer- District Supply Officer’s order did not mandate any mode of payment either in cash or by cheque, and, moreover, there were banking channels available even when supplies had been effected, impugned disallowance was rightly made by authorities. [S. 260A, R.6DD]
S. 37(1) : Business expenditure–Capital or revenue-Encashment of bank guarantee -Failure to perform its part of concessionaire agreement, DTC encashed bank guarantee-Allowable as revenue expenditure.
S. 36(1)(iii) : Interest on borrowed capital- Interest free loans to subsidiaries – Advance to sister concern for business purposes – Allowable as deduction.
S. 12AA : Procedure for registration–Trust or institution- Non communication of changes in the object clause – Registration cannot be refused. [S. 11, 13]