S. 143(3): Assessment-Limited scrutiny-Assessing Officer cannot travel beyond issue raised under limited scrutiny-Failure to obtain prior permission of Principal Commissioner for such additions-Order is bad in law-Instruction Nos. 5 Of 2016 dt.14-7-2016 and 20 of 2015, dated 29-12-2015.. [S. 45, 48, 54B, 54C,54D,54GA, 55A]

S. 143(3) : Assessment-Jurisdiction-Pecuniary Jurisdiction-Non-corporate returns declaring income above Rs. 20 Lakhs with Assistant Commissioner or Deputy Commissioner and not with ITO-Notice and consequential assessment order is invalid-Instruction No. 1/2011 (F. No. 187/12/2010-It(A-I), Dated 31-1-2011. [S. 143(2), 148, 149(1)(b)]

S. 143(1) : Assessment-Intimation-Rectification of mistake-Pending rectification application transferred from Central Processing Centre to jurisdictional Assessing Officer-Disallowance of entire expenditure grossly without notifying of adjustment-Rejection of rectification request on ground of no mistake apparent from record is held to be not justified-Matter remitted to Jurisdictional Assessing Officer to rectify mistake and allow assessee’s claim. [S. 154, Form No 10B]

S. 143(3): Assessment-Amalgamation-Amalgamating company ceases to exist-Intimated to the Assessing Officer-Order passed in name of amalgamating company is void ab initio-Order is quashed [2(31), 92CA, 144C]

S. 115JB : Company-Book profit-Provision for bad and doubtful debts-Diminution in value of investments-Deletion of adjustment by Commissioner (Appeals) is upheld.

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Interest on loans advanced to Associated enterprise uncontrolled price method-Adjustment is deleted-Loan advanced from own funds-Matter remanded to Assessing Officer for re adjudication-Corporate guarantees are International Transactions-Rate of fees to be determined on the basis of guarantee is obtained from a bank-One half Per Cent. considered appropriate on basis of average rates charged by banks. [S.92B]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Comparables-Functionally different and without segmental data is to be excluded-Functionally similar to be included-Notional interest-Outstanding receivable-Factors responsible for delay to be analysed over last three or four Assessment years to determine benefit accruing to debtors–Working capital adjustment-Matter remanded-Deduction at source-Form 26AS-Matter remanded for re-examination. [S.92B S, Form No, 26A]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Loans to two overseas subsidiaries-Domestic prime lending rate is inapplicable-Addition is deleted

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Transfer Pricing Officer is bound to follow one of prescribed methods-Addition is deleted-Selection of comparable-Matter remanded-Interest on refund-Entitle interest up to date of receipt of refund order.[S.92CA, 234D, 244A]

S. 90 :Double taxation relief-Capital gains-Tax resident of Singapore-Capital gains on sale of shares of Indian company-Denial of exemption is not justified-DTAA-India-Singapore [S.9(1)(i), Art. 13 (4)]