S. 147 : Reassessment –Delay in filing objections- -If the assessee delays filing objections to the reasons and leaves the AO with little time to dispose of the objections and pass the assessment order before it gets time barred, it destroys the formula provided in Asian Paints Ltd v. Dy. CIT ( 2008) 296 ITR 90 (Bom) that the AO should not pass the assessment order for 4 weeks- A writ petition to challenge the reopening is not entertained [ S.148 ]

S.45 :Capital gains- Cash credits -Bogus long-term capital gains-Penny stocks- Filed evidences for (a) purchase of shares, (b) payment by account payee cheque, (c) balance sheet disclosing investments, (d) demat statement (e) evidence of sale of shares through stock exchange, (e) bank statement reflecting sale receipts, (f) brokers ledger, (g) Contract notes etc, the gains cannot be treated as bogus on human probabilities, suspicion, conjectures and surmises – Addition as cash credits is deleted [ S.10(38) ,68 ]

S. 92C : Transfer pricing-Arm’s length price—Comparables-Providing back office support services-Followed rule of consistency -Different business hence cannot be comparable. [S. 92CA]

S. 92C : Transfer pricing-Arms’ length price–Selection of comparable- Functionally dissimilar companies cannot be selected as comparables-Foreign head office and Indian Branch-Requires determination of ALP on such transactions-Brightline test -Marketing support services cannot be compared with testing services, project of Emergency Transport and Infrastructure development and projects of development and hygiene education development.

S. 92C : Transfer pricing-Arms’ length price–Resale of goods–RPM method is most appropriate – Foreign exchange gain/loss arising out of revenue transactions is required to be considered as an item of operating revenue/cost, both for assessee as well as comparables -Granting adjustment on account of import duty paid because it incurred higher import duty in comparison with comparable companies – No adjustment on account of separate items resulting into computation of gross profit can be permitted.

S. 92C : Transfer pricing-Arms’ length price-Fluctuation margins- Rendering ITES services to AE, a company which was showing fluctuating margins, could not be accepted as comparable- Fee for advisory and other services to AE matter remanded.

S. 92C : Transfer pricing-Arms’ length price–Business of developing, modifying and designing of computer software-Doctrine of commercial prudence invoked by assessee so much so it involved billing of software product purchased from parent company on cost to cost basis without any mark-up was to be demonstrated and proved with cogent evidence -Matter remanded.

S. 45 : Capital gains-Transfer of equity shares to sister concern- Genuineness and validity of transaction-Matter remanded. [S. 2(47), 56(2)(viia)]

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident – Business possibilities in the field of energy sector – Expenses incurred for the purpose of PE are to be allowed- DTAA-India -USA -Mauritius [ S. 9(1)(i),195 Art. 5, 7, 15]

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident–Engaged in distribution of recharge pens of various DTH providers via online network-Servers of USA based company Amazon for which it paid web hosting charges-No control over server or severs space being deployed by Amazon, while providing e-services as per agreement- Not royalty -Not liable to deduct tax at source – Amendment, if any, to scope of royalty by an amendment in 2012 by Finance Act with retrospective effect cannot fasten assessee with liability to withhold tax for the years which have already been closed prior to insertion of amendment-DTAA-India –USA. [S. 9(1)(vi), Art.12]