S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Profit Level Indicator-Gross margin on sales appropriate where associated enterprises are risk-bearing distributors.-Tested party-Alternative benchmarking adopting associated enterprises as tested parties-Accepted-Interest on loans to associated enterprises-Assessee’s contention that loans formed part of shareholder activities not examined-Matter remanded-Corporate, financial and performance guarantees-International transactions-Guarantee commission chargeable at 0.5 per cent-Imputation of royalty from associated enterprises-Assessee not owner of brand-No notional royalty could be charged. [R. 10B]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Management fee for advisory-TPO was not justified in making a downward adjustment by taking management fee expense at ‘Nil’ under CUP method, disregarding TNMM employed by assessee as most appropriate method, without pointing out any defects in application or relevance of TNMM by the assessee-Payment of management fee for advisory services and use of brand name, said services received by assessee could not be labelled as shareholder/stewardship services.[S.92CA]

S.92BA: Transfer pricing-Specified domestic transaction-Arm’s length price-Avoidance of tax-Industrial undertaking-Generation of electricity-Internal CUP available-Purchase price of electricity from State Electricity Board constituted market value-Transfer pricing adjustment deleted. [S. 80IA]

S. 92B : Transfer pricing-International transaction-Arm’s length price-Avoidance of tax-Royalty-Payment for technical know-how-Royalty transaction cannot be aggregated with manufacturing transactions-Transaction held to be at arm’s length. [S.92C, R. 10AB]

S. 90: Double taxation relief-Foreign tax credit-Credit on income exempt in India-Available where permitted by applicable DTAA-DTAA-India-USA [Art.25]

S. 80JJAA: Employment of new workmen-Deduction-Amended provisions wrongly applied-Matter remanded for examination under unamended provisions.

S.80IA: Industrial undertakings-Enterprises engaged in infrastructure development-Captive power generation-Market value of electricity-Rate charged by distribution company to consumers to be adopted for computing deduction.[S.80IA(8)]

S. 80-IA : Industrial undertakings-Enterprises engaged in infrastructure development-Generation of steam-Steam constitutes power-Captive consumption-Arm’s length price cannot be taken at Nil-Transfer pricing adjustment deleted. [S. 92BA]

S. 80G: Donation-Corporate Social Responsibility-Donation to approved institutions-Deduction cannot be denied merely because expenditure forms part of CSR activities. [S. 37, Companies Act, 2013, S. 135]

S. 56: Income from other sources-Purchase of shares-Value adopted by assessee higher than fair market value-Provision not attracted. [S. 56(2)(viib), [S.92C, R. 11UA]