S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Back-Office services-Comparables-Companies functionally different from assessee being routine back-office service provider is to be excluded-Company earning profit in any one of three years can be treated as comparable-Matter remanded for verification of financial statements-Transfer Pricing Officer is bound to follow directions in letter and spirit-Deferred receivables-Interest rate in terms of Libor Plus a mark-up of two hundred basis points to be considered.[S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Calculation of margins-Allocation of employee cost-Not proper-Selection of comparables-Turnover filter-Companies failing turnover filter up to Rs. 200 Crores to be excluded–Working capital adjustment mandatory requirement if assessee is able to provide reasonable and accurate data of comparable companies-Interest on delayed receivables to be benchmarked separately-Directed for adjustment afresh after applying six months’ Libor plus 300 basis points with mark-up of 100 basis points. [S.92CA]

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Reimbursing of expenses-No element of profit-Ad hoc adjustment recommended at 10 Per Cent. of expenses is not permissible-Late deposits of employees’ contribution to provident fund and employees’ State Insurance Corporation is not allowable. [S. 37(1), R.10B]

S. 80IB : Industrial undertakings-Search and seizure-Manufacturing expenses-Bogus purchases-Statement retracted Customs, Excise and Service Tax Appellate Tribunal holding that the assesses engaged in genuine purchases and manufacturing activities-Entitled to deduction.[S.153A]

S. 80IA : Industrial undertakings-Enterprises engaged in infrastructure development-Developer and contractor-Work of irrigation project and construction and development of road-Not works contractor but developer undertaking projects of Infrastructure Facility-Organisations awarding contracts were 100 Per Cent. owned by State Government-Entitle to deduction-Interest income-Only net interest income to be excluded.[S.80-IA(4A), 80IA(13)]

S. 69B : Amounts of investments not fully disclosed in books of account-Survey-Payment in cash purchase of land-Addition is made in the hands of director-Addition cannot be made in the hands of the company.[S.133A]

S. 69B : Amounts of investments not fully disclosed in books of account-Excess stock-Survey-Amount cannot be treated as unexplained investment-Taxable as business income.[S.133A]

S. 68 : Cash credits-Remittance from its Singapore based holding company-Source of the source not required to be proved-Addition is not justified.

S. 68 : Cash credits-Agricultural income-Agricultural income is not disputed-Cash deposits cannot be assessed as cash credits. [S.10(1)]

S. 68: Cash credits-Credit worthiness of parties proved-Addition is deleted.