S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Comparable-Duty drawback part of operating profit-Not to be excluded-Export incentive of only current year to be reckoned-Functional difference and involvement in research and development distinguishing factors-Related party transactions-Transfer Pricing adjustment to be restricted to transactions with Associated Enterprises —Organisation for Economic Co-Operation and development guidelines to be followed to ensure broad comparison among comparables-Working capital adjustment to be allowed.[S.92]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Comparble-Functionally Dissimilar is to be excluded-High or low turnover not a criterion for acceptance or rejection of company when company functionally similar-Company having substantial rental income with relevant expenditure being unascertained is to be excluded-Company following calendar year as accounting year is to be included as its figures for assessee’s financial year could be extrapolated-Company engaged in diverse activities including engineering services, web development and hosting, and business analysis not comparable to software development service provider-Company providing high-end integrated services and having substantial goodwill-These factors not examined by Transfer Pricing Officer-Issue restored to file of Transfer Pricing Officer for re-examination–Interest rate to be considered based on foreign currency and not based on prime lending rate-Transfer Pricing Officer considering foreign branch which had shut down-Issue sent back to Transfer Pricing Officer for fresh decision-Computation of profit level indicator-Foreign exchange gains and losses are operating in nature.

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-Comparable uncontrolled price-Royalty-Other method-Royalty payments made for unique intangibles-Directed to substitute working for other method.[R.10AB]

S. 90 :Double taxation relief-Non-Resident-Salary —Long term international assignment-Salary earned in Singapore offered to tax in Singapore and taxes paid-Salary taxable in country where employment exercised-Income not taxable in India-DTAA-India-Singapore [S. 5(2), 15, art. 15, 25]

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Not involved in any other activity other than running of port-Irrespective of various income declared by assessee in nature of duty credit entitlement, interest income, reversal of provision, small scarp sales etc., any income generated out of this port would be eligible for deduction.

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Late payment surcharge and rebate on power of purchase-Receipts having nexus with profits-Eligible for deduction-Addition made to income of eligible unit-Eligible for deduction in respect of sums added. Central Board Of Direct Taxes Circular No. 37 Of 2016, Dated 2-11-2016.

S. 69A : Unexplained money-High net worth individuals-Sufficiently demonstrating plausibility for holding gold ornaments in excess of limit prescribed by Board’s Instruction-Credit to be given for gold, jewellery and ornaments held in custody of Assessee on behalf of sister-in-law-Addition is deleted. [S. 132]

S. 69A : Unexplained money-Search-loose papers-Commodity trade-Recharacterising nature of income offered by assessee-Surrendered income cannot be treated as unexplained money-Provision of section 115BBE cannot be applied.[S. 68, 69, 69A, 69B, 69C 69D, 115BBE]

S. 69A : Unexplained money-Search and seizure-Cash belonging to two concerns not functioning from same premises-Could not be considered in hands of assessee-Deletion of addition is proper

S. 69A : Unexplained money-Cash deposit-Demonetisation period-Not explained the source of fund-Addition is affirmed.