S. 92C : Transfer pricing-Arm’s length price-Most appropriate method-Manufacturing and trading of dental products and trading activity-95% trading and 5% manufacturing-Tribunal adopting RPM as MAM to benchmark transaction is held to be justified. [S. 260A]

S. 92C : Transfer pricing-Arm’s length price-Comparability factors-Profit Margin/Profit Level Indicator-An enquiry under rule 10B(3) ought to be carried out, to determine as to whether material differences between assessee and said entity can be eliminated and unless such differences cannot be eliminated, entity should be included as a comparable. [R. 10B]

S. 80IA : Industrial undertakings-Infrastructure development-Interest income from employees on advances-Equipment hire charges-Ammonia tank wagon hire charges-Cane hire charges-interest income from banks and financial institutions-Interest on deposits-Not derived from industrial undertaking-Not eligible for deduction. [S. 28(i), 32AB, 56]

S. 68 : Cash credits-Loans-Information from Investigation wing-Bogus accommodation entries-Statement was recorded and affidavits filed-Opportunity of cross examination was not granted-Merely on the basis of information from Investigation wing addition is not justified-Order of Tribunal affirmed. [S. 131, 133(6), 153A, 260A]

S. 68 : Cash credits-Capital gains-Penny stock-Shell company-Shares held as investments for more than ten years-Addition as cash credit was deleted. [S. 45]

S. 45 : Capital gains-Two separate accounts-Investment portfolio-Stock in trade-Sale of investments assessable as capital gains and not as business income. [S. 28(i)]

S. 43B : Deductions on actual payment-Employees’ contribution towards provident fund and ESI would qualify for deduction even if paid after due date prescribed but before due date of filing of return.-Amendment is prospective in nature. [S. 36(1)(va)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission, brokerage, etc.-Passenger service fee-Withheld by Airlines-Not liable to deduct tax at source-Verify factual aspect, matter was restored to the file of the Assessing Officer. [S. 194H]

S. 37(1) : Business expenditure-Consumption incentive-Ascertained liability-Provision-Allowable as deduction. [S. 145]

S. 37(1): Business expenditure-Loss on investment in subsidiary-Expansion of business-Permanent diminution in value of investment made in equity shares-Allowable as business expenditure. [S. 28(i), 36(1)(vii]