S. 132(4) : Search and seizure-Introduction of undisclosed income as share capital of company-statement of assessee-transactions made by him in FY 2009-2010 and including amount in return for AY 2010-11. AO accepting admission but bringing sum to tax in 2009-10. Sum could not be taxed in AY 2009-10. [S. 68, 132, 153A]
S. 115JB : Book profit-Subsidies-Refund of VAT and Excise duty-New Industry-Cannot be considered as income for purpose of book profit even though same was credited in profit and loss account.
S. 115JB : Book profit-Disallowance made under section 14A cannot be considered while computing book profit under clause (f) of Explanation 1 to section 115JB. [S.14A]
S. 92C : Transfer pricing-Arms’ length price-Comparable-leading company without segmental information cannot be accepted as a comparable.
S. 92C : Transfer pricing-Assessee engaged in software development services, comparable engaged in wide variety of services-Not comparable without segmental analysis. TPO bound by the directions of the DRP. [S. 92CA, 144C]
S. 92C : Transfer pricing-Arm’s length price-Management fee-TPO did not resort to transfer pricing exercise adjustment-Addition was to be deleted. [S. 92C(1)]
S. 92C : Transfer pricing-Arm’s length price-Comaprable-Cannot be comparable with business support services-Functionally dissimilar cannot be comparable-Abnormal growth due to restricting cannot be cpmparable-Company had outsourced services to third party vendors cannot be held to be comparable.
S. 92C : Transfer pricing-Arm’s length price-Capacity utilization adjustment-allowed as the assessee is in the initial years of operation-Matter remanded0 Treatment of depreciation as operating expense-Depreciation held as operating expense for R&D segment considering interlink with manufacturing segment.
S. 92C : Transfer pricing-Arm’s length price-Comparable-Functionally similar it could not be excluded-TPO applied RPT filter of 25 per cent in case of assessee company, comparable company having RPT of more than 50 per cent could not be accepted as valid comparable-Working capital adjustment is allowed.
S. 92C : Transfer pricing-Arm’s length price-Cup method-e-mails correspondence is considered as evidence.