S. 50C : Capital gains-Full value of consideration- Stamp valuation-Even after applying provisions of S.50C, difference in capital gain declared by assessee and figure adopted by AO did not even exceed 10 per cent of stamp duty valuation, addition was deleted. [ S.45 ].

S. 37(1) : Business expenditure –Notional addition- Sale at discounted price to retailers was to increase volume of sales through e-commerce – Where a trader transfers his goods to another trader at a price less than market price and transaction is a bona fide one, taxing authority cannot take into account market price of those goods, ignoring real price fetched to ascertain profit from transaction-Revenue cannot bring to tax hypothetical income accordingly the addition was deleted- [ S. 2(24) ,4, 28(1), 40(A)(2)(a),145 ]

S. 28(i) : Business loss -Forfeiture of security-Capital or revenue-Encashment of bank guarantee for failure to construct bus shelter with in time prescribed in the agreement is allowable as business loss .

S. 271(1)(c) : Penalty – Concealment – Assessment based on estimate which was partially reduced at appellate stage – Levy of penalty is held to be not justified

S. 153A : Assessment – Search- Original assessment completed on date of search and no incriminating material found during search — Addition cannot be made .

S. 147 : Reassessment – Search-original assessment was pending before Commissioner (Appeals) — Assessing Officer is not empowered to issue reassessment notice — Reassessment is held to be illegal as void ab initio. [ S.148, 153A ]

S.147: Reassessment- Best judgement- Addition based on the statement of third party and some notings found from laptop of third party- neither the copy of statement was provided nor opportunity to cross examination was provided -Addition was held to be bad in law [ S. 144,148 153C ]

S. 92C : Transfer pricing – Arm’s length price -Professional consultancy fees, management fees for support service and sap consultancy charges — Transactional net margin method is most appropriate method.

S. 92C : Transfer pricing – Arm’s length price -Net Margin method-Loss on sale of fixed assets not part of operating cost -AO has to carry out adjustment in computing profit level indicator as well as profit level indicator of comparables – Errors which crept in to while computing margins of comparables to be rectified -Transfer pricing study for a particular year is unique for each year and depend upon functions performed , risk assumed and assets employed by entities , there is no rule of consistency – Broad functional comparability of entities to be carried out there may not be product to product comparision- AO to reappreciate functional comparbility between assessee and comaprbles . [ S.92CA ]

S.45: Capital gains — Business income — Investment in shares – Just because volume and frequency of transactions are high profit on sale of shares cannot be assessed as business income [S.28 (i) ]