S. 92C : Transfer pricing-Arm’s length price-Functionally different-Justified in directing for exclusion of ABCL from the list of comparables-Interest receivable-Notional interest for relating to alleged delayed in collecting receivable-No substantial question of law-Question as to whether in a given case transfer pricing adjustment on delayed receivable could apply even to a debt-free company or not. does not arise on facts and is left open. [S. 260A]

S. 92C : Transfer pricing-Arm’s length price-TNM method-Transaction of buying services for sourcing garments in India-Addition made to ALP by applying cost plus 5 per cent mark-up on FOB value of exports among third parties was not supported under rule 10B(1)(e) and was liable to be deleted. [R. 10B(1)(e)]

S. 69C : Unexplained expenditure-Failure to explain the source-Justified in confirming the disallowance.

S. 68 : Cash credits-Share application money-Shell companies-Share holders could not explain their source-Addition is held to be justified.

S. 48 : Capital gains-Computation-Full value of consideration-Retention of money in Escrow account-Possession was handed over-Amount of money in Escrow account has to be considered while computing the capital gain for the purpose of full consideration. [S. 45]

S. 43B : Deductions on actual payment-Tax paid under Kerala Agricultural Income-tax Act-Not allowable as deduction. [S. 10(1), 37(1), Kerala Agricultural Income-tax Act, 1991]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment of freight and carriage charges for previous year 2006-07 (1-4-2006 to 31-3-2007)-Disallowance is held to be not valid-Commission payment disallowance is held to be justified. [S. 194C]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission charges to overseas agents-Service rendered outside India-Cannot be considered as fees for technical services-Not liable to deduct tax at source-Art, 12-OECD Model convention. [S. 9(1)(vii), 195]

S. 37(1) : Business expenditure-Statutory obligation-Contribution to common good fund-Special assistance fund-Allowable as deduction.

S. 37(1) : Business expenditure-Discount on issue of ESOP-Allowable as deduction.