S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-Software Development Service-Companies having huge brand value and engaging in sale of software products, developing mobile enterprise applications and solutions not functionally comparable to be excluded from list of comparables-Interest due on receivable outstanding-Not charging others-Addition cannot be made. [S. 92CA]

S. 92C : Transfer pricing-Arm’s length price-Direct Sales Compensation-Direction to Assessing Officer to adopt average commission rate of 3.93 Per Cent. as appropriate rate for benchmarking-Bad debts written off-Adjustment made towards bad debts written off to be deleted-Royalty-Matter remanded.-Order pronounced much after the expiry of 90 days. [S. 254(1)]

S. 80IA : Industrial undertakings-Wind mills-Initial assessment year-Option to choose year within block of 15 years from commencement of business.

S. 68 : Cash credits-Bogus purchases-Addition of entire amount payable to six sundry creditors is held to be not justified-GP estimate of 16% on unsubstantiated purchases from six creditors was up held. Adoption of Gross Profit Rate Of 16 Per Cent.

S. 68 : Cash credits-Unsecured Loan-Identity, capacity and genuineness established-Addition is held to be not valid-Ad-hoc disallowance without rejecting the books of account is held to be not proper-Reassessment is held to be valid. [S. 133(6), 147, 148]

S. 68 : Cash credits-Share application moneys-Shares issued at premium-Share applicant had enough funds to subscribe to shares-Addition cannot be made merely on the ground share applicant did not appear in response to summons. [S.131]

S. 50 : Capital gains-Depreciable assets-Block of assets-Set off of loss-Long term gains can be set off against carried forward capital loss. [S. 70, 74]

S. 45 : Capital gains-Gift-Company-Family arrangement-Arrangement between members of family-Company separate and distinct entity not part of family-Shares held as stock in trade-Gift of shares to other group companies-Articles empowering gift-Shares disclosed in recipients’ annual accounts and recipients assessed-Shares transacted trough Dematerialised account-No real income taxable in assessee’s hands-Conversion of stock-in-trade into capital asset-Provision for taxation brought with effect from 1-4-2019-No provision for taxation of gift of stock-in-trade in hands of Donor imputing market value. [S. 2(24)(xiia), 2(42A), Expln. 1, 28(via), 45(2), 49(9), Companies Act, 2013, or the Companies Act, 1956. Transfer of Property Act, 1882, S. 122]

S. 45 : Capital gains-Tenancy rights-Amount received for surrender of tenancy rights assessable as capital gains-Investment in specified assets is eligible exemption. [S. 55(2)(a), 54EEC, 54F]

S. 45 : Capital gains-Cost of acquisition-Fair market value-Joint Development Agreement-Sale of flats subsequently-Fair market value of constructed area becomes cost of acquisition and Indexed cost to be deducted in order to arrive at capital gains-Matter remanded for verification. [S. 2(22B), 48]