S. 143(3) : Assessment-Unaccounted expenditure and receipts-Only profit element in unaccounted business receipts and net result of unaccounted receipts and expenditure could be brought to tax-Assessment made substantively in hands of company-Protective addition in hands of director is deleted-Certificate from Gram Panchayat secondary evidence-Primary Evidence of crops, income and expenses unavailable-Fifty Per Cent. treated as agricultural income-Balance treated as income from other sources-Cash available in hands of group-Set off to be permitted-If sufficient cash available after set off and adjustments-No addition is permissible-Depreciation-Value of addition to block-Addition of differential depreciation is deleted. [S. 5, 10(1), 32 56, 69]

S. 143(3) : Assessment-Search-Income from undisclosed sources-Jewellery discovered in search-Assessing Officer cannot make separate addition over and above excess identified in search-Rate of tax-Penalties-Levy of tax under section 115BBE not in accordance with law. [S. 5, 69, 115BBE, 132, 132(4), 271AABB, 271AAC]

S. 143(3) : Assessment-Powers-Tribunal remanding matter to Assessing Officer to consider whether certain receipts constitute fees for technical services-Assessing Officer treating receipts as royalty-Beyond scope of remand-Reimbursement of expenses for use of software-Not fees for technical service-DTAA-India-USA [S. S. 9(1)(vi), 9(1)(vii), art. 13(4)]

S. 143(1) : Assessment-Intimation-Employees contribution to Provident fund and Employees’ State Insurance-Matter restored to Assessing Officer for verification-If Employees contribution had been remitted within due date from end of month in which salary disbursed entitled to relief. [S.143(1)(iv)]

S. 139 : Return of income-Foreign tax credit-Assessment-Benefit of tax paid in Kazakhstan is directed to be allowed.[S.139(4) 143993) Rule, 128(9), Form No 67]

S. 133A : Power of survey-Surrender of income-Unexplained money-Unexplained expenditure-Excess stocks-Excess stock chargeable to tax as business Income-Deduction of partners’ remuneration allowable against income surrendered.[S. 40(b), 69A,69C.]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Employees’ Stock Option Plan Expenses-Purpose of granting employees restricted stock units to retain and motivate them to continue employment with assessee-Arm’s length price of employees stock option plan expenses could not be taken as nil-Arm’s length price and transfer pricing adjustment, if any, to be recomputed following method adopted by assessee.

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Back-Office services-Comparables-Companies functionally different from assessee being routine back-office service provider is to be excluded-Company earning profit in any one of three years can be treated as comparable-Matter remanded for verification of financial statements-Transfer Pricing Officer is bound to follow directions in letter and spirit-Deferred receivables-Interest rate in terms of Libor Plus a mark-up of two hundred basis points to be considered.[S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Calculation of margins-Allocation of employee cost-Not proper-Selection of comparables-Turnover filter-Companies failing turnover filter up to Rs. 200 Crores to be excluded–Working capital adjustment mandatory requirement if assessee is able to provide reasonable and accurate data of comparable companies-Interest on delayed receivables to be benchmarked separately-Directed for adjustment afresh after applying six months’ Libor plus 300 basis points with mark-up of 100 basis points. [S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Reimbursing of expenses-No element of profit-Ad hoc adjustment recommended at 10 Per Cent. of expenses is not permissible-Late deposits of employees’ contribution to provident fund and employees’ State Insurance Corporation is not allowable. [S. 37(1), R.10B]