S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Selection of Comparables-Companies having huge brand value, intangibles, R&D activities and related party transactions not comparable to captive software service provider-Working capital adjustment-Adjustment cannot be denied without assigning reasons-Assessee entitled to relief-TPO must adopt one of the prescribed statutory methods-Second attempt to rectify omission not permissible. [S.92CA, 92B]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Comparable companies having exceptionally high turnover to be excluded while determining ALP.-Working capital adjustment is allowable while determining arm’s length price-Purchases from non-associated enterprises cannot be treated as deemed international transactions in the absence of evidence of influence by the associated enterprise [S. 92, 92B, 92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Interest on compulsorily convertible debentures to be benchmarked as debt till conversion-Recharacterisation not permissible-Benchmarking at Libor + 200 basis points proper and in accordance with Reserve Bank of India Guidelines. [S. 92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Intra-group services-ALP of GIS services cannot be determined at NIL where assessee substantiated receipt, benefit and cost allocation of services-Addition deleted-GSA services remanded for fresh benchmarking. [S. 92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Foreign exchange gain arising from trade receivables of international transactions constitutes operating income for computing PLI-Functionally dissimilar companies cannot be selected as comparables for benchmarking ITES transactions. [S.92BA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Overseas AE, being the least complex entity, can be selected as the tested party where the assessee substantiates its functional profile and comparability-Matter remanded for fresh examination. [S.92A, 92B]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Ad-hoc determination of ALP of intra-group royalty payments at Nil without applying any prescribed method or comparable transaction is unsustainable-Where the assessee benchmarked the transaction under CUP and substantiated receipt of services, TP adjustment is liable to be deleted. [S.92CA]

S. 90: Double taxation relief-Tax on excess interest under Article 11 cannot exceed the treaty rate of 10%-Surcharge and education cess not leviable separately-DTAA-India-Cyprus. [Art. 11]

S. 80JJA: Biodegradable waste-Collecting and processing-Allocation of expenses-Consistency of practice-Order of CIT(A) affirmed.

S. 80P: Co-operative societies-Deduction under section 80P cannot be denied merely because the assessee claimed deduction under the wrong provision. [S. 80A(5), 80P(2)(a)(i), 80P(2)(c), 154]