S. 115JB : Company-Book profit-Subsidy in form of excise duty exemption for setting up new industry in Sikkim-Not liable to tax-Excluded from computation of book profits-Reduction of foreign fluctuation translation reserve, inadvertently added while computing book Profits in return to be allowed. [S. 4,115JB(6) Accounting Standard-11.]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Corporate guarantee fees-Arm’s length price of bank guarantee charged at rate of 1 Per Cent. is held to be justified-Optionally convertible loans to subsidiary without charging interest-Entitled to interest at commercial rate which was at Arm’s length-No transfer pricing adjustment on account of interest on loans is warranted-Reimbursement of expenses-Associated enterprises did not incur expenses on behalf of assessee-No adjustment on transaction of reimbursement of expenses.[S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Adjustments for advertisement marketing and promotional expenses-Administrative and business support services-Sales facilitation services-Matter remanded to the AO for verification. [S.92CA, 143(1)(a)]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Selection of ccomparables-Company functionally dissimilar from assessee-company is to be excluded from final set of comparables.

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Most appropriate method-Variation is not a ground to reject assessee’s Transfer Pricing analysis.[S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Transfer pricing study report must be reliable and correct-Functional asset and risk analysis required to be done-Rejection of transfer pricing study report is proper-Benchmarking of transactions-Selection of comparable companies-Working capital adjustment allowed in subsequent years-Matter remanded for verification [S. 92CA]

S. 90 :Double taxation relief-Capital gains-Sale pf shares-Tax Residency certificate issued by Mauritius tax authority is unquestionable-Not shell or conduit company-Beneficial owner of capital gains-Capital gains is exempt from taxation-The Assessing Officer is directed to factually verify the aspect, if the shares were acquired after April 1, 2017 and sold prior to March 31, 2019, the benefit under article 13(3B) could be given to that extent. [Art, 13(3A) 27A]

S. 80P : Co-operative societies-Interest earned on deposits with Co-Operative Banks-Eligible for deduction. [S.2(19), 80P(2(d), Banking Companies Act, 1949, 5(1), Co-operative society registered under the Co-operative Societies Act, 1912, Maharashtra Co-Operative Societies Act, 1960, S.2(10)]

S. 80P : Co-operative societies Credit facilities to its members-Nominal members-Issue restored to Assessing Officer to examine claim following the decision of Supreme Court in Mavilayi Service Co-Operative Bank L td. v. CIT (2021) 431 ITR 1 (SC)-Interest earned from deposits kept with bank-Income from other sources-Corresponding expenditure incurred in earning interest income should be allowed as deduction-Issue restored to Assessing Officer-Cash credits-Demonetisation-Money deposited by its members towards repayment of loans and pigmy deposits-Stopped collection after receipt of Notification Dated 14-11-2016 issued by Reserve Bank Of India-Cash deposits can not be treated as unexplained money-Addition is deleted [S. 56,68, 80P(2)(a)(i), 80P(2)(d)]

S. 80P : Co-operative societies-Deposits made out of surplus funds with Co-Operative Banks and scheduled Banks-Entitled to deduction of interest.[S.80P(2)(a)(i), 80P(2(d), Maharashtra Co-operative Societies Act, 1960,]