S. 115BAA: Tax on income of certain domestic companies-Determination of tax in certain cases-Failure to file Form No 10IC before due date of filing of return-Due to technical error, there being no fault of assessee, it could not be deprived of benefit under section 115BAA particularly when this being first year for availing such benefits-Order of Tribunal is affirmed.[S. 260A]
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-ITAT directed the TPO to consider the functions, assets and risks (‘FAR’) of the year under consideration with FAR of the years in Advance Pricing Agreement (‘APA’)-Order of Tribunal is affirmed. [S.92CA, 260A]
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Transfer pricing adjustment on basis of transactions where prices charged to Associated Enterprises was less than that charged to unrelated parties-Contrary to legal provisions-Deletion of upward transfer pricing adjustment by the Tribunal is affirmed. [S.92, 260A]
S. 69 : Unexplained investments-Share capital-Addition made based on unproven and untested statements recorded during searches-Onus to prove investments bogus not discharged-Deletion of addition proper.[S. 132, 260A]
S. 68: Cash credits-Share premium-Identity and credit worthiness established-Purchases from unregistered dealers-Gross profit declared-Order of Tribunal is affirmed. [S. 260A]
S. 68 : Cash credits-Creditworthiness established-Some of the lenders replied in notice issued by the Assessing Officer-Order of Tribunal deleting the addition is affirmed.[S.133(6), 260A]
S. 68 : Cash credits-Sale of shares-Bogus loss-Penny stocks-Payments made through banking channel-No evidence of agreement to convert unaccounted money by taking fictitious loss-Order of Tribunal deleting the addition is affirmed-No substantial question of law. [S. 260A]
S. 68 : Cash credits-Share transactions-Tribunal misdirected itself and made an addition on presumptive income-Matter remanded back for de novo examination. [S. 254(1)]
S. 56 : Income from other sources-Consideration received for shares in excess of fair market value-Allotment of new shares as right is creation of property cannot be considered as transfer-Section 56(2)(vii)(c) not applicable on new allotment of shares-Issue of additional shares for renunciation of rights issue-Wife/Father fall within definition of ‘relatives’ excluded-Order of Tribunal is affirmed. [S. 56(2)(vii)(c), 260A]
S. 47(iv) :Capital gains-Transaction not regarded as transfer-Capital gains Subsidiary-Prerequisites provided to Indian subsidiary company-Assessee inadvertently offered receipt for levy of tax-Tax could not be levied as receipt did not constitute income-Income-tax leviable only in accordance with provisions of Income-tax Act-Admission by assessee is not conclusive. [S.4, 45]