S. 147 : Reassessment-Under invoicing-Cash credits-Report of commission- Reassessment proceedings initiated merely on basis of report of a Commission appointed by Central Government that there was under invoicing of exports-Held to be bad in law-Pronouncement of order-Period during which lockdown was in force in country due to COVID 19 pandemic was to be excluded. [S. 68, 148, 255, ITAT R. 35]

S. 147 : Reassessment-Internal audit objection-Reimbursement of expenses-Failure to deduct tax at source-Reassessment is held to be not valid-90 days time period permitted under Rule 34(5) for pronouncing order was to be computed by deducting Covid-19 pandemic lockdown period. [S. 40(a)(ia), 148, 195, 255, ITATR. 34(5)]

S. 145 : Method of accounting-Rehabilitation and implementation of water supply-Percentage of contract method adopted by the assessee is held to be justified.

S. 145 : Method of accounting-Rejection of books of account without providing an opportunity is held to be not valid-Cash credits-Rejection of documents without any reason is held to be not justified-Matter remanded. [S. 68]

S. 143(3) : Assessment-Amalgamation-Succession to business otherwise than on death-Amalgamating company was not in existence at time of conduct of assessment proceedings as well as on date of passing Assessment Order-Assessment Order passed in name of amalgamating company being void ab initio was to be set aside. [S. 170, 292B]

S. 115JB : Book profit-Computation for purpose of clause (f) of Explanation 1 to section 115JB(2) is to be made without restoring to computation as contemplated under section 14A, read with rule 8D. [S. 14A, R. 8D]

S. 115JB : Book profit-Additional revenue on account of subsequent realization of export-Addition cannot be made while computing book profit. [S. 10A]

S. 92CA : Reference to transfer pricing officer-There was no transfer pricing adjustment of more than 10 crores in earlier year-Assessing Officers reference to TPO was in contravention to Instruction No. 3 of 2016 and such reference was to be declared as invalid. [S. 92C]

S. 92C : Transfer pricing-Arm’s length price-Comparable-company engaged in the business of investment banking, merchant banking, merger and acquisition, private equity, syndication, etc. cannot be compared to non-binding investment advisory service provider.

S. 92C : Transfer pricing-Arm’s length price-Comparable-A company engaged in distribution of software product could be accepted as valid comparable.