S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Selection of comparables-Companies included by assessee itself in final list, later sought to be excluded on functional difference/turnover filter-Functional similarity established-Turnover difference not sufficient for exclusion-Interest on outstanding receivables constitutes international transaction-Rate depends on currency of denomination-Remanded for reconsideration-Employees’ contribution to provident fund-Belated remittance not deductible even if paid before due date of filing return [S. 2(24)(x), 36(1)(va), 92CA, 139(1)]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Selection of comparables-Related-party transactions ratio to be applied consistently on aggregate basis, 15 per cent. filter appropriate-Functionally different companies without segmental data to be re-verified-Companies with unreliable export data excluded-Negative net worth not a factor for rejection if functions, assets and risk analysis acceptable-Functionally similar companies satisfying export turnover filter to be included-Matter remitted for company-wise functions, assets and risk analysis-OECD guidelines to be followed for broad comparability-Working capital adjustment affecting net profit margin to be allowed-Inadvertent wrong reckoning by Assessing Officer-Rectification application pending-Assessing Officer directed to carry out rectification. [S.92CA, 154]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Most appropriate method-Royalty-Department adopting comparable uncontrolled price method-Tribunal in assessee’s own case for earlier year holding transactional net margin method most appropriate-Assessee’s use of same method justified-Payment of management fees to associated enterprise-Identical payment accepted by Transfer Pricing Officer in earlier years-Facts similar in current year-Payment held to be at arm’s length.[S.92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction Management support services-Fresh evidence filed before Tribunal-Matter remanded for examination by Transfer Pricing Officer.[S.92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-While benchmarking specified domestic transactions, the TPO cannot cherry-pick only low-priced products from a basket of products for determining ALP-Where TNMM is accepted as the Most Appropriate Method in the subsequent year, the supplementary TP study adopting TNMM ought to be considered. [S. 92BA]

S. 90: Double taxation relief-Foreign Tax Credit-FTC cannot be denied merely because Form No. 67 was filed after the due date under section 139(1), where it was furnished before completion of assessment-Requirement under Rule 128(9) is directory and not mandatory. [S., 91, 143(1), R. 128(9)]

S. 80IA: Industrial undertaking-Special deduction-Container freight station approved and notified as infrastructure facility-Deduction allowable.[S.80IA(4)]

S. 69B: Unexplained investment-Survey-Excess stock found during survey of business premises-Surrendered in return as business income-No independent source of investment shown-Business being sole source of income-Survey at business premises, no books impounded, no reasons recorded-Deeming provision not attracted-Excess stock taxable as business income. [S. 28, 115BBE, 133A]

S. 68: Cash credits-Search and seizure-Undisclosed income-Advances received through banking channels for land sale-Suppression means receipt of excess as own money outside banking channel-No correlation with specific sale-Not unaccounted sale-Addition deleted.-Advances from buyers-Addition based on book entries, not incriminating material-Confirmation, ledger, bank statements furnished-Identity/creditworthiness beyond dispute once sale deed registered-Non-filing of confirmation from few persons irrelevant-Addition deleted-Unaccounted sale consideration-Managing partner’s admission vs registered sale deed-Latter to prevail-Only profit element assessable, cost subsumed in closing stock-Commissioner (Appeals)’s findings upheld-Advances not linked to identifiable plot-Confirmation, ledger, PAN furnished-Addition based on book entries not incriminating material-Identical treatment required for similarly placed parties-Addition deleted-Addition based solely on partner’s statement admitting unaccounted income-Statement pertaining to partners, not assessee-No corroborating material-Addition not sustainable. [S. 132, 132(4)]

S. 68: Cash credits-Share capital and premium-Newly incorporated company, no business model-500-fold premium charged only on second lot issued 27 days after first lot at nil premium-Investors unverifiable, no source of funds, director not produced-Source of funds not established-Identity, creditworthiness and genuineness not substantiated-Addition as unexplained cash credit justified.