This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 92C : Transfer pricing-Transfer of shares-The company in which shares was transferred was not in the winding up nor was there any reasonable prospect of its going into liquidation, adoption of NAV or book value was not really warranted-Matter remanded. [S. 92CA]

Topcon Singapore Positioning Pte Ltd. v. Dy. DIT (IT) (2018) 170 DTR 249 / 195 TTJ 849 (Delhi)(Trib.)

S. 92C : Transfer pricing–Arm’s length price-Adjustment of Management Support Service fee-APA with the Board, for the subsequent assessment years- Matter remanded to CIT(A)

Tieto It Services India (P) Ltd. v. DCIT (2018) 163 DTR 60 / 196 TTJ 126 (Pune)(Trib.)

S. 92C : Transfer pricing–Arm’s length price–Cup method-Royalty and technical fees- Even if the CUP method is applied to the international transactions of Royalty and Technical know-how fee, still no transfer pricing adjustment would be called for.

TS Tech Sun India (P.) Ltd. v. DCIT (2018) 161 DTR 18 / 191 TTJ 273 (Delhi)(Trib.)

S. 92C : Transfer pricing—AMP expenses—No adjustment is required. There cannot be any formula with mathematical precision to determine ALP of international transaction relating to AMP expenses.

Soni Mobile Communication (India) Pvt. Ltd. v. Add. CIT (2018) 196 TTJ 100 (2019) 173 DTR 17 (Delhi )(Trib.)

S. 80P : Co-operative societies–Interest income–FDR with banks– Operational funds–Entitle to deduction-Remanded for verification-Gross or net–Gross interest is held to be taxable. [S. 56, 57 80P(2)(a)(i)]

Tiara Co-Operative Agricultural Service Society Ltd. v. ITO (2018) 194 TTJ 1 (UO) (Chd.)(Trib.)

S. 80P : Co-operative societies–Mutuality-Nominal member cannot be treated as non-member and so transactions of nominal members cannot be treated as transactions of non-members-Entitle to exemption. [S. 4, 80P(2)].

Sai Datta Mutual Aided Co-Operative Credit Society v. ACIT (2018) 169 DTR 65 / 194 TTJ 970 (Hyd.)(Trib.)

S. 68 : Cash credits-Share Application amount-Pvt company–Burden is not discharged–Additions held to be justified.

Shreenath Heritage Liquor (P) Ltd. v. ACIT (2018) 162 DTR 265 /191 TTJ 706 (Jaipur) (Trib.)

S. 45 : Capital gains—Transfer—Development agreement-Under a development agreement, assessee authorizes developer for construction of apartments, it can be said that assessee has handed over possession of its plot to developer and, thus, the same constitutes transfer and same is taxable as capital gain in year in which agreement was entered into- Reassessment is held to be valid – Matter remanded. [S. 2(47), 54F, 147, 148]

K. Vijaya Lakshmi v. ACIT (2018) 167 DTR 270 / 169 ITD 597 / 195 TTJ 114 (SMC) (Hyd.) (Trib.) Sireesha N. (Smt.) v. ACIT (2018) 167 DTR 270 / 169 ITD 597 / 195 TTJ 114 (Hyd.)(Trib.)

S. 45 : Capital gains-Share of sale consideration of agricultural land-Relinquishment of shares–Family arrangement-Matter remanded to verification of shares of each members and decide accordance with law.

Sushila Devi Meena v. ITO ( 2018) 194 TTJ 68 (UO) (Jaipur) (Trib.)

S. 44BB : Mineral oils–Computation-Non-residents-The activity of hiring Ships by the user for transporting men/machines to locations where it was doing exploration/production of mineral oil is directly and closely related with ‘services ‘rendered by plant and machinery and the income arising out of such activities has to be assessed u/s. section 44BB and not u/s. 44B of the Act- Amount of service tax being in nature of statutory payment could not be included in gross receipts for the purpose of computing presumptive income of assessee u/s. 44BB. [S. 44B]

Swiwar Offshore Pte. Ltd. v. Add. CIT(IT) (2018) 167 DTR 341/ 193 TTJ 951 (Mum.) (Trib.)