S. 147: Reassessment-Reopening is invalid where the very same income has already been assessed substantively in the hands of another assessee, and the AO records only a contingent belief that the income may escape assessment if the other assessee succeeds in appeal-Contingent reopening was without jurisdiction and liable to be quashed. [S. 148]

S. 144C: Reference to dispute resolution panel-Limitation-Transfer Pricing order passed beyond the time limit prescribed under section 92CA(3A) is barred by limitation-Consequently, the assessee ceases to be an ‘eligible assessee’ under section 144C and the draft as well as final assessment orders are void ab initio. [S. 92CA(3A), 144C(15)(b)(i), 153]

S. 143(2): Assessment-Notice-Additional ground-Notice issued under section 143(2) contrary to the mandatory format prescribed by CBDT Instruction issued under section 119 is invalid-Consequently, the assessment based on such notice is liable to be quashed. [S.119, 143(3), 254(1)]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Management consultancy services-Internal CUP/Internal TNMM to be preferred over external comparables-Transfer pricing adjustment deleted-Transfer Pricing Officer not adopting any prescribed method-Adjustment unsustainable-Selection of comparables-Comparable engaged in similar line of business cannot be excluded. [S. 92CA, R. 10B]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Selection of Comparables-Companies having huge brand value, intangibles, R&D activities and related party transactions not comparable to captive software service provider-Working capital adjustment-Adjustment cannot be denied without assigning reasons-Assessee entitled to relief-TPO must adopt one of the prescribed statutory methods-Second attempt to rectify omission not permissible. [S.92CA, 92B]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Comparable companies having exceptionally high turnover to be excluded while determining ALP.-Working capital adjustment is allowable while determining arm’s length price-Purchases from non-associated enterprises cannot be treated as deemed international transactions in the absence of evidence of influence by the associated enterprise [S. 92, 92B, 92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Interest on compulsorily convertible debentures to be benchmarked as debt till conversion-Recharacterisation not permissible-Benchmarking at Libor + 200 basis points proper and in accordance with Reserve Bank of India Guidelines. [S. 92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Intra-group services-ALP of GIS services cannot be determined at NIL where assessee substantiated receipt, benefit and cost allocation of services-Addition deleted-GSA services remanded for fresh benchmarking. [S. 92CA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Foreign exchange gain arising from trade receivables of international transactions constitutes operating income for computing PLI-Functionally dissimilar companies cannot be selected as comparables for benchmarking ITES transactions. [S.92BA]

S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Overseas AE, being the least complex entity, can be selected as the tested party where the assessee substantiates its functional profile and comparability-Matter remanded for fresh examination. [S.92A, 92B]