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) ]

S.45:Capital gains — Un registered agreement – The settlement for cancellation of agreement took place after the close of the assessment year 2012-13. There was no contract in the eyes of law under S. 53A after 2001 unless the contract was registered . Addition was not sustainable .[ S. 2(47)(v), Transfer of Property Act, 1882,S.53A ]

S.40(a)(ia):Amounts not deductible – Deduction at source – Payments made to the vendors for the work performed by them by deploying semi-skilled personnel did not involve any technical or professional knowledge on their part, and the work could not be brought within the sweep of S. 194J- Disallowance cannot be made as the assessee correctly deducted the tax at source u/s 194C of the Act .[ S.194C, 194J ]

S.37(1):Business expenditure — Travelling expenses — No disallowance could be made once expenditure is subjected to Fringe benefits tax.