S. 145 : Method of accounting–Cash method -Reimbursement not received from state government cannot be taxed on accrual basis. [S. 145]

S. 139 : Return of income – Return under 139(3) is necessary in order to carry forward losses under the head ‘business or profession’ or ‘capital gains’- Claim for carry forward and set off of busness loss is not allowed . . [S.45, 139(1), 139(3), 139(5)]

S. 139 : Return of income–revised return–amalgamation–post amalgamation revised return was required to be filed as the effective date was much prior to such date–Held, section 139(5) is not applicable to cases where revised returns are required to be filed pursuant to the approval of scheme of amalgamation by competent court–Held, Rule 12(3) requiring filing of return of income electronically not applicable to cases where the revised returns are require to be filed pursuant to the approval of scheme of amalgamation by competent court–Held, if electronic filing is not possible, Department to accept physical revised return. [S. 119, Companies Act, 2013 S. 391, and Rule 12(3) of the Rules]

S. 132(4) : Search and seizure-Statement on oath–Statement made by the assessee that capitation fees paid by to the Engineering college–Held, cannot ipso fact make addition based on such statement–Held, no admission that engineering fees paid out of undisclosed income.-Addition held to be not justified [S. 158BB, 158BC]

S. 115JB : Book profit-Special economic zones-Even income arising from the business of a SEZ Unit, which is exempt u/s 10AA, is subject to MAT from AY 2012-13 onwards owing to the insertion of the proviso to s. 115JB(6)-Order of rectification is held to be valid. [S. 10AA, 154]

S. 92C : Transfer pricing-Arms’ length price-Most appropriate method vis-a-vis rule of consistency-TPO applied the RPM and CPM method for benchmarking international transactions- Tribunal however applied TNMM on the aggregated transactions observing that it has been consistently applied over the years-Justified.

S. 92C : Transfer pricing-Arms’ length price–Whether one entity is comparable to another–question of fact–No substantial questions of law.[S. 260A]

S.80G : Donations–Tribunal rightly remanded the matter to decide application of Section 80G–Relevant documents pointed out before Tribunal from which charitable nature could be deciphered – Remand by the Tribunal is held to be justified. [S. 12A]

S. 80 : Return for losses-losses can be allowed to be carry forward and set off only if return of income has been filed in the year in which the loss arise claiming such losses. [S. 74, 139(1)]

S. 73 : Losses in speculation business–Explanation-Whether trading in shares is the principal business of the assessee is a mixed question of facts and law-Matter remanded. [S. 71, 72, 254(1)]