S.92C:Transfer Pricing — Arm’s Length Price —Outstanding expenses — Interest — Period of 60 days reasonable within which expenses ought to have been recovered—SBI-PLR rates alone should be calculated without any 3 per cent spread.8.15 Per Cent should be adopted while calculating Arm’s Length Price interest — Opportunity cost to assessee’s funds to be calculated in relation to interest earning capacity in domestic market. [ S.92B ]

S. 80P : Co-operative societies -Primary agricultural credit society – Interest earned on investments made with Sub-treasuries entitled to benefit of deduction [ S80P(2)(a)(i)]

S.37(1): Business expenditure -Capital or revenue -Expenditure incurred on renovation of leasehold building is revenue expenditure .

S.37(1): Business Expenditure — Bogus purchases — Disallowance of 15% of unverifiable purchases is held to be justified .

S.36(1)(iii): Interest on borrowed capital — Disallowance on interest debited to profit and loss account as attributable to amounts invested in capital work-in-progress is justified.

S. 14A : Disallowance of expenditure – Exempt income – Assessing Officer not giving cogent reason for rejecting suo motu disallowance made by Assessee — Assessee need not maintain separate books for expenses incurred in earning exempt income —No disallowances can be made . [ R.8D ]

S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Inspection and survey of imported and exported cargo and certifying in relation to quality and price — No technical knowledge, experience, skill, know-how or processes made available to recipient of service — Not chargeable to tax in India -DTAA- India – UK [ Art.13(4)(c ) ]

S. 281 : Certain transfers to be void -Tax Recovery Officer could not declare a transaction of transfer as void, if revenue wants to have transaction nullified, it must go to civil court to seek declaration to that effect. [ S. 222, Second Schedule , R.11 ]

S. 92C : Transfer pricing – Arm’s length price – Royalty paid was already forming part of operating cost, there is no necessity of separately benchmarking royalty.-Matter remanded to Tribunal ]

S.68: Cash credits- Loan from relative- Cash deposit in to Bank account- Cash deposited from sale of property – Failure to produce sale deed- Cash was deposited even before date of alleged sale agreement- Addition is held to be justified