S. 139 : Return of income – Condonation of delay of 1232 days – When explanation offered was acceptable and genuine hardship established – Condonation application for delay is to be accepted [ S.119 ]

S. 92C : Transfer pricing – Arms’ length price -company engaged in providing BPO services – Comparable company engaged in KPO and other IT services hence cannot be accepted as valid comparable

S. 80IB : Industrial undertakings – No deduction is allowable if return of income is not filed within due date of the filing of the return. [ 80AC, 139(1), 139(4) ]

S. 37(1) : Business expenditure – Capital or revenue -Purchase of computer software for up-gradation of existing computer software – Revenue expenditure even though it provides enduring benefit- Expenses for employees welfare -foster safe working environment is revenue expenditure – The test of one-time payment or not is not the sole test to determine nature of expenditure.

S. 37(1) : Business expenditure – Sales commission paid to agent in Iraq in relation to sale of trucks and particular person to be treated as allowable business expenditure – Capital or revenue-Drawings and designing charges related to computer software – Cannot be treated as capital asset.

S. 32 : Depreciation – Tribunal’s observation that transaction lacks bonafides – No material to dislodge factual findings recorded by Tribunal – Matter remanded to AO by Tribunal justified .

S. 32 : Depreciation – Higher rate – Transportation- Motor lorries used for providing specialized equipments and trained manpower for mining and transportation of excavated minerals on hire is eligible for higher rate of depreciation

S. 10(23A) : Professional association or institution – Approval for exemption granted by Central Government to undivided State Bar Council of Madhya Pradesh vide notification dated 09-08-1966 – Notification and exemption would equally apply to the State Bar Council of Chattisgarh by virtue of provisions of S. 78 and 79 of the Madhya Pradesh Reorganisation Act, 2000 (‘the Act of 2000’) wef 01-11-2000.

S. 4 :Charge of income-tax – Legislative power of retrospective amendment – Legislature cannot by way of introducing an amendment overturn a judicial pronouncement to declare it to be wrong or nullity – Rather Legislature can amend provisions of any statute to remove basis of judgment- Clause in statute – Prohibiting payment of interest on amount of security deposit is not arbitrary or violative of Article 14 of the Constitution of India.[ Art. 14 ]

S. 260A: Appeal –High Court -Transfer pricing- Appeals against exclusion or inclusion of comparables to determine ALP of tested parties should not be filed in a ritualistic manner. Any inclusion or exclusion of comparables per se cannot be treated as a question of law unless it is demonstrated to the Court that the Tribunal or any other lower authority took into account irrelevant consideration or excluded relevant factors in the ALP determination that impact significantly- The counsel of the Revenue is directed to serve a copy of this order on the Principal Chief Commissioner of Income Tax within the State of Maharashtra for necessary action [ S.92C ]