S. 92C : Transfer pricing – Arm’s length price – It is necessary that the controlled transactions be compared with uncontrolled transactions which are similar in all material aspects which determining the ALP. Since the comparable company fails in not only the service revenue from export/ ITES filter of 75% taken by the TPO but also the diminishing revenue filter and thus the Tribunal was correct in excluding such comparable.[ S. 133(6) ]
S. 80IA: Industrial undertakings – Interest – Generation of power – Interest income earned from advance given to employees during the course of business and also interest income earned from bonds issued by the sole customer to whom electricity is supplied is eligible for deduction. [ S. 80IA(4)(iv)]
S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation – Amalgamation – Demerger – [ S. 2(19AA) ]
S. 50B : Capital gains – Slump sale – Transfer of business undertaking- Specified hotels – Issue of preference shares and debentures – Exchange – Cannot be assessed as slump sale [ S. 2(42C) , 2(47), 45 ]
S. 45: Capital gains – When the Tribunal held that no capital gains can be levied since there is no consideration for transfer of a capital asset and thus the computation mechanism fails, there was no error in the said conclusion reached by the Tribunal. [ S. 48, 50D ]
S. 40(a)(ii) : Amounts not deductible – Rates or tax – Education cess- In view of retrospective amendment vide Finance Act, 2022 to section 40(a)(ii), education cess paid not allowable as an expenditure [ S. 37(1) ]
S. 40(a)(ia): Amounts not deductible – Deduction at source – Commission and sitting fees to directors – Amended provision of section 194J is not applicable – Deletion of addition is justified [ S. 194H , 194J ]
S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident –Professional and consultancy charges – Explanation 4 was not on the statute -Deletion of addition is justified [ S. 9(1)(vi)), 195 ]
S. 32 : Depreciation -Windmills – Income offered – Depreciation is allowable .
S .14A : Disallowance of expenditure – Exempt income – Failure to record satisfaction – Deletion of addition is justified. [ R. 8D ]