S. 145 : Method of accounting-Mercantile system of accounting-Customs duty drawback-Refund-Income-Accrual-Accrues when assessee gets right to receive it-When it is sanctioned to assessee by Customs Authorities-Not in year when assessee makes claim. [S. 4, 5, 37(1).]

S. 144 : Best judgment assessment-Business expenditure-Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Capacity Utilisation Adjustment-Matter remanded to the Assessing Officer. [S.92C]

S. 143(3) : Assessment-Addition of excess of gross profits As Reconciliation statement-Deletion of addition is affirmed.[S.28(i)]

S. 143(3) : Assessment-Income from undisclosed sources-Estimate of profits-Suppressed sales-Assessing Officer is directed to adopt profit at 3.5 Per Cent. on suppressed sales. [S. 69C]

S. 143(3) : Assessment-Deduction of tax at source-Mismatch between income shown in profit and loss account and that reflected in Form 26AS-Cannot be assessed as income of the assessee. [S. 5, 145]

S. 115Q : Domestic companies-Tax on distributed profits-Deemed to be in default-Assessee buying back shares and paying tax Credit not granted-Application for rectification not disposed of-Assessing Officer is directed to process application in accordance with law-Self assessment tax-Assessing Officer is directed to process application and pass orders in accordance with law. [S. 140A, 154]

S. 115JB : Company-Book profit-Mandatorily transferred to reserve form part of book profits-Income-No diversion of income by overriding title-Contingent provision on standard assets could not be deducted as it was not ascertained liability. [S. 5]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Comparables-Functionally different-Not comparable.

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Payment of technical fees for services rendered-Neither Assessing Officer nor Transfer Pricing Officer nor Commissioner (Appeals) doubted actual Rendering or utility of services-Not open to Department to question actual rendering of services before Tribunal.-Most Appropriate Method-Transactional Net Margin Method-For immediately preceding and succeeding years payment of technical service fees accepted without Transfer Pricing adjustments-Rule of consistency is followed-Rejection is not justified. [S. 254(1)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Transactions with entity to be considered in consolidated way and not to be bifurcated according to calendar year in that contracting state-Rate applied in Mutual Agreement Procedure for transactions between assessee and United States associated enterprise for period April 2012 to December 2012 to transactions during January 2013 to March 2013.[S.92CA]