S. 147 : Reassessment-After the expiry of four years-Unexplained investment-Beneficiaries of Trusts-Discretionary trust-Account with bank in Liechtenstein-Notice barred by limitation-Addition was not valid-1/5 share in the trust neither accrued nor arisen-Additional ground was admitted. [S. 69, 143(3), 148, 151(2)]

S. 145 : Method of accounting-Real estate business-Project competition method-Advance from customers-Estimate at 10 percent of advance received during the year is proper-Advance carried over from earlier years no addition can be made. [S. 28(1), 145(3)]

S. 145 : Method of accounting-Provision for software expenses-Allowable as deduction. [S. 37(1)]

S. 143(3) : Assessment-Undisclosed income-Cash in hand as at close of preceding year accepted in assessment-Sufficient to cover shortfall in sum returned-Addition cannot be made. [S. 132]

S. 143(3) : Assessment-Undisclosed income-Bogus purchases-Sales accepted-Statement in the course of search-Neither the statement was furnished nor an opportunity of cross examination was provided-Addition is held to be not justified. [S. 131, 133(6)]

S. 142(2A) : Inquiry before assessment-Special audit-Time limit-Assessment completed within two months from date of special Audit report-Held to be within limitation period. [S. 142(2C), 153]

S. 115JB : Book profit-Capital or revenue-Receipt of unutilised contribution from welfare trust-Not liable to tax while computing Book Profit. [S. 2(24), 40A(11)]

S. 92C : Transfer pricing-Arm’s length price-Comparable-Company whose audited financial data for previous year available in public domain not to be discarded merely because it has different financial year-Expenses on travel, boarding and lodging, etc. of its employees during outstation visits-Assessee should have marked up expenses by a profit-margin before making recoveries-Weighted average period of realization with respect to all invoices was only 20.52 days-Matter remanded.

S. 92C : Transfer pricing-Arm’s length price-Net margin method-Adjustments to be restricted to international transactions and not to be applied to entire segment of manufacturing activity-Entitled to benefit of tolerance range of +5 Per Cent. [S. 92CA]

S. 92B : Transfer pricing-Associated enterprise-Performance guarantee-International Transactions-Transfer Pricing Adjustment-Performance Guarantee-No risk was involved-Adjustment is not justified-Corporate Guarantee to bank on behalf of Associated enterprise-Directed to recompute arm’s length price of guarantee commission at 0.20 Per Cent.