S.142(2A): Inquiry before assessment-Special audit-Satisfaction of Assessing Officer-Extension of time-Special audit order is void where satisfaction is not independently recorded by the Assessing Officer and statutory procedure under sections 142(2A) and 142(2C) is not followed.[S. 143(3), 153]
S. 120: Jurisdiction of income-tax authorities-Assessment-Jurisdiction-Additional Commissioner acting as Assessing Officer-Absence of authorisation under sections 120(4)(b) and 127-Assessment without jurisdiction liable to be quashed-Additional legal grounds challenging jurisdiction admissible before Tribunal.
[S. 2(7A), 120(4)(b), 124(3), 127, 143(3), 144C, 254(1)]
S. 92C: Transfer Pricing-Arm’s length price-Avoidance of tax-International transaction-Comparables-Functionally dissimilar companies are to be excluded while determining the arm’s length price. [S. 92CA, 92F]
S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Export Commission-Adjustment was deleted-Royalty and technical know-how-Revenue expenditure-Expenditure incurred on glow signboards, signage, sales tools and dealer fixtures was also held to be revenue expenditure-Education cess-Not allowable as deduction-Dividend Distribution Tax-Matter remanded to the file of Assessing Officer. [S.37(1), 40(a)(ii)]
S. 90: Double taxation relief-Foreign tax credit cannot be denied merely because Form No. 67 was filed after the due date, where the claim is otherwise supported by the return of income. [S. 139(1), R. 128]
S. 80P: Co-operative societies-Deduction-Absence of banking licence-Deduction allowable-Disallowance of gratuity contribution-enhancement of business profits would also qualify for deduction in view of CBDT Circular No. 37 of 2016. [S.80P(2)(4)]
80G: Donation-Deduction-Corporate Social Responsibility expenditure-Donation to approved institution-Allowable as deduction-Education cess-Not allowable as deduction-Dividend Distribution Tax-Not entitled to claim a lower rate of Dividend Distribution Tax under the DTAA, [S. 37(1), Expln. 2 40(a)(ii), 115-0, 234A, 234B, 234C)
S.69C: Unexplained expenditure-Business Expenditure-Bogus Purchases-Accommodation Bills –Failure to give an opportunity of cross-examination-Deletion of addition was affirmed.[S. 37(1), 131, 133A]
S. 69B: Amounts of investments not fully disclosed in books of account –Survey-Excess stock-Regular business stock-Taxable as business income-Section 69B not applicable. [S. 28(i), 115BBE, 133A]
S. 68: Cash credits-Unexplained Money-Senior citizen-Cash deposits during demonetisation-Agricultural income-Lump sum addition-Addition restricted to lump sum disallowance of Rs 62 000-Section 115BBE was inapplicable as the deposits were from explained sources and directed taxation under the normal provisions of the Act-The decision was rendered on the peculiar facts of the case and was not to be treated as a precedent. [S. 69A, 115BBE]