S. 115BAA : Tax on income of certain domestic companies-Exercise of option-Revised return-Non-filing of Form 10-IC-CBDT Circular condoning delay does not relax requirement of exercising option in return filed under S. 139(1)-Assessee having expressly stated “none of above” not eligible-Writ dismissed [S. 115BA, 115BAB, 139(1), Art. 226, Form 10-IC]

S. 92C : Transfer pricing-Arm’s length price-Most appropriate method-TNMM consistently accepted in earlier years-Rejection without reasons-Invocation of “any other method” under Rule 10AB not justified-Assessee’s PLI higher than mean PLI of comparables-No substantial question of law [S. 260A, R. 10AB]

S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Amalgamation-Demerger-Relaxation of conditions under r. 9C(a)-Power of Central Government is discretionary and to be exercised only in exceptional cases-Failure to achieve stipulated capacity utilisation-Rejection of relaxation upheld-Writ petition dismissed.[S. 72A(2), R. 9C(a), Art. 226]

S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Amalgamation-Demerger-Scheme of restructuring involving transfer of only specified assets and liabilities and consideration paid in cash and not by issue of shares-Provisions of s. 72A(4) not attracted-Assessee entitled to carry forward and set off of loss. [S. 2(19AA), 2 (19AAA), 72A(4)]

S. 69A : Unexplained money-Search and seizure-Cash seized-Commission income-Mere declaration without proof of source-In absence of satisfactory explanation with supporting material, addition u/s 69A justified and taxable u/s 115BBE. [S. 115BBE, 132)

S. 68 : Cash credits-Share capital / Share premium-Identity, creditworthiness and genuineness established-Deletion of addition justified-No substantial question of law. [S. 260A]

S. 49 : Capital gains—Previous owner—Cost of acquisition—Sale of asset received on liquidation of company—Asset received on liquidation and sold in same year—Both ss. 49(1)(iii)(c) and 55(2)(b)(iii) applicable—Proper computation to consider both transactions-The Tribunal, though accepting the legal position canvassed by the assessee, decided the issue against the assessee solely on the ground that earlier coordinate Bench decisions in cases of other assessees were adverse, instead of referring the matter to a Larger Bench. The High Court held that such an approach was incorrect-Order of Tribunal set aside and assessee’s method upheld. [S. 45, 46(2), 48, 49(1)(iii)(c), 55(2)(b)(iii), 254(1),]

S. 37(1) : Business expenditure-Penalty, fine, etc.-Payment of licence fee for use of goodwill by legal firm to heirs of goodwill owner-Alleged breach of Bar Council of India Rules not an offence or purpose prohibited by law-Deduction allowable. [S. 37(1), Explanation.]

S. 36(1)(vii) : Bad debt-Loss on account of guarantee obligation to group company-Financing business-Isolated transaction-Arrangement resulting in transfer of losses within group-Not allowable as deduction. [S. 36(2), 37(1)]

S. 12AA : Procedure for registration –Trust or institution-Objects of the assessee trust are both charitable as well as religious in nature-Entitle for registration-Order of Tribunal affirmed.[S.260A]