S. 201 : Deduction at source-Failure to deduct or pay-Indian custodian of shares-Failed to deduct TDS from sale consideration of shares so held by him on behalf of overseas depository-Overseas depository had already paid advance tax on capital gains on sale of shares-Deduction at source liability under section 201 being a vicarious liability of payer of an income, would not come into play when primary liability of recipient of income was already discharged, and thus, basic tax withholding liability under section 201(1) and interest liability under section 201(1A) is quashed.[S. 195, 201(1),201(IA)]

S. 199 : Deduction at source-Credit for tax deducted-Sub-Contractor-Assessing Officer is directed to verify receipts and deducibility of corresponding payments and thereafter allow claim of credit to assessee in respect of tax deducted at source by NHAI. [R.37BA]

S. 148 : Reassessment-Notice-Notice issued by non-Jurisdictional Assessing Officer-Order is void-ab initio. [S. 147]

S. 145 : Method of accounting-Rejection of books of account-Failure to file supporting evidence-Justified in rejecting the books of account-Net profit has to be estimating on scientific basic after allowing deduction on amount of depreciation, partners remuneration and interest paid to partners on their capital. [S. 32, 36(1)(iii), 40(b), 145(3), Partnership Act, 1932, S. 4]

S. 143(1)(a) : Assessment-Intimation-Debatable issue-Cannot be disallowed by CPC-Matter is remanded back to Assessing Officer for adjudication afresh. [S. 11(1)(11(2)]

S. 142(2A) : Inquiry before assessment-Special audit-Referred without examining the accounts-Principle of natural justice-Extended period of limitation is not available-Order is bad in law. [S. 153(3), Explanation1(iii)]

S. 115JB : Company-Book profit-Adjustment of disallowance made under section 14A could not be added to income for purpose of computation of book profit-Interest on income tax refund-Not credited interest on income tax refund to profit and loss account and reduced same from advance tax disclosed under loans and advances as a consistent accounting practice in view of non-crystallisation of such interest due to appeals pending at various forums in respect of related income tax refunds and assessee had offered interest on income tax refunds to tax under normal provisions-No addition of such interest was to be made to net profit for computing book profit under section 115JB-Direction of CIT(A) to for computation of disallowance as per Rule 8D is affirmed. [S. 14A, R.8D]

S. 115BAA : Tax on income of certain domestic companies-Determination of tax in certain cases-Failure to file Form 10IC-Order of the Assessing Officer computing the tax liability at rate of 30 percent as against 22 percent shown by the appellant-Gross receipt or total turnover in financial year 2019-20 did not exceed Rs. 400 crore, rate of income tax was to be 25 per cent of total income-Matter remanded.[S. 139(1), 143(1), Form No 10IC]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Adjustments-Purchases/imports-Specified domestic transaction-Purchase transaction of raw materials with AE-Excess purchases booked in relevant year had to be reduced for purpose of arriving at correct profit and only thereafter profitability ratio of assessee was required to be calculated for the purpose of comparison.

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Corporate guarantee-Capital financing-ALP adjustment in respect of corporate guarantee provided to AEs should be determined at rate of 0.5 per cent.[S.92B]