S. 147 : Reassessment-Jurisdiction of authorities-No specific order passed by principal CIT under section 120(4)(B) authorising Joint Commissioner to act as an AO-Reassessment Order passed by Joint Commissioner liable to be quashed. [S. 2(7A), 120(4)(b), 148]

S. 147 : Reassessment-After the expiry of four years-AO should record ‘reason to believe’ that certain income chargeable to tax has escaped assessment–This belief should be based on independent enquires/application of mind and not on borrowed satisfaction ie basis information from Investigation Wing- Sanction-Sanction granted by the CIT under S. 151 by simply writing “Yes, I am satisfied” is also invalid. [S. 147, 148]

S. 147 : Reassessment-After the expiry of four years–No scrutiny assessment–Reopening solely based on information from Investigation Wing–No independent application of mind– Reassessment is held to be invalid. [S. 148]

S. 145 : Method of accounting-Adjustment on account of MODVAT credit has to be made in respect of closing stock, opening stock, purchases and sales.

S. 145 : Method of accounting-Rejection of books of account-No allegation from department that books of account of assessee either incorrect or incomplete-Gross profit ratio of one year not be applied to another year for determining profit of some of transactions of another year-Rejection of books is not justified. [S. 144]

S. 144C : Reference to dispute resolution panel–Draft assessment order passed in the name of amalgamating company, a non-existent entity on the date of passing such order–entire assessment proceedings based on such invalid draft assessment order are void ab initio and deserve to be quashed. [S. 292B]

S. 143(2) : Assessment–Notice-Notice issued by officer who was neither AO of assessee on the basis of address in PAN application nor AO of assessee as per address mentioned in return-Notice issued illegal. [S. 127, 143(3)]

S. 115JAA : Book profit-Deemed income-Tax credit–Demerger of SEZ units–Tribunal Order-MAT credit needs to be allowed to the assessee-not to the demerged company (SEZ units) even though the same arose on account of SEZ units. [Companies Act, S.391]

S. 92C : Transfer pricing-Arm’s length price-Interest on loans to AEs-Arm’s length rate of interest is the rate prevalent in the country where the loan is received/consumed and not the country in which the assessee advances loans to its AEs-Order of settlement commission is conclusive as regards the matter there in and not on other years. [S. 245D(4), 245I]

S. 92C : Transfer pricing-Arm’s length price–No express agreement shown to exist between assessee and AE for incurring ALP expenses for promotion of brand of AE–hence, AMP expenses cannot come within the purview of the international transaction-Determination of ALP of royalty at Nil is not sustainable-Applying rule of consistency-payment of royalty paid in earlier and subsequent years-has to be accepted.