S. 271(1)(c) : Penalty – Concealment –Estimate of income- sale of land along with building – agreement silent on consideration towards super structure – estimate made by assessee – such estimate increased by the AO and finally stood reduced to another amount by ITAT – Held, no penalty on such additions based on estimates.

S 271AAB : Penalty – Search cases – commodity profits – sum entered in the other documents maintained in normal course and retrieved during search – Held, not undisclosed income – Held, no penalty can be levied.

S. 153A : Assessment – Search or requisition -Disallowance of commission expenses paid to overseas agent- in respect of completed assessments-No addition can be made which is not based on any incriminating material found in the course of search.

S. 147 : Reassessment –Scientific research expenditure – original assessment completed after considering all facts – reassessment based on subsequent amendments applicable to subsequent years – Held, no new tangible material – Held, reassessment bad in law. [S. 35(2AB)]

S.147: Reassessment-After the expiry of four years- Concluded assessment reopened after four years on the basis of assessment of subsequent years – Held, no failure on the part of the assessee to disclose fully and truly all material facts – Held, reassessment not valid.

S. 115JB : Book profit –Provision for bad and doubtful debts – Assessee made a provision for bad and doubtful debts – It was maintaining a separate provision account – Certain bad debts were written off in such account – Provision amount lesser than the bad debts written off – Held, assessee eligible for higher deduction – Held, therefore, provision amount cannot be termed as unascertained liability and has to be allowed – Held, tribunal cannot direct AO to allow greater deduction-Prior period expose cannot be added while computing book profits-Provision for leave encashment ascertained liability and therefore, cannot be added to book profit-Provision for non-moving and obsolete stock not a provision and also not debited to P&L account and therefore, cannot be added to book profit- Provision for fringe benefit tax not similar to provision for income tax and that fringe benefit was a liability of the employer therefore, cannot be added to book profit.[S. 36(1)(vii), 36(1)(viia)]

S. 115JB : Book profit–Amount debited under P&L a/c towards debenture redemption reserve fund is a known liability and therefore, cannot be added to the book profit.

S. 92C : Transfer pricing – Arms’ length price – operating profit – liabilities and doubtful debt written back as well as design income and services income form part of operating profit for computing operation profit while calculating OP/OC ratio.

S. 92C : Transfer pricing – Arm’s length price –Jurisdiction of TPO and AO – Held, TPO required to simply determined to the ALP irrespective of the benefits accruing to the assessee – Held, TPO cannot determine the ALP at Nil on the ground that no benefit accrued to the assessee -Held, AO to decide on deductibility of expense u/s 37(1) – Matter set aside. [ S.37(1)]

S. 90 : Double taxation relief – Permanent Establishment – Assessee, a US company entered into a master franchise agreement with an Indian company for franchise of Dominos Pizza Stores – It provided certain store/consulting services to the Indian Company – Indian company paid store opening fees – assessee was entitled to charge 3 per cent of sales of store of Indian Company and further 3 per cent on sale of their sub-franchise store –Held, profit/loss from the business of Indian company and sub-franchisee belong to them – Held, none of the conditions or clauses of Permanent Establishment ,Article 5 were attracted and therefore, the Indian company did not constitute PE of the assessee in India-DTAA-India- USA.[Art.5 ]