S. 92CA : Transfer pricing Reference to Transfer Pricing Officer- Arm’s Length price- Avoidance of tax- Comparables- Objections of assessee on account of functional dissimilarities is not considered by Tribunal-Matter remanded to Transfer Pricing Officer.[S.92CA(3), 254(1)]

S. 92CA : Transfer pricing Reference to Transfer Pricing Officer- Arm’s Length price- Avoidance of tax- Net profit margin-That Profit margins required to be compared with profit margins of enterprise and not that of any sub-unit or division of enterprise-Res Judicata- Once accepted in earlier year as initial year- Thee same has to be accepted- Company- Splitting transactions unit wise for determining Arm’s Length Price would not be apposite —Order of Tribunal holding payroll taxes as allowable expenditure is not erroneous- Expression an international transaction is to be construed in plural. [S. 2(31),10A, 92CA(3), 92F(iii) R.10A]

S. 80I : Industrial undertaking- For computing deduction under section 80I, it would be necessary to give effect to, and factor in, deduction allowed under section 33AC and if result of such deduction under section 33AC was that there was no profit from ship-Deduction under section 80I is allowable-Shipping business-Reserves-Reserve created to be primarily used for acquiring new ship- Cannot partake character of profit-Deduction inextricably linked to business of shipping with direct nexus to shipping operations brought out in provision itself-Total income-Income from capital gains and other sources contribute merely in computation of scale of cap on deduction-Profits of ship to be given effect to and factored in for computation of deduction under Sectionm80I- Provision for creating reserve to acquire new ship-Amendment not applicable to relevant assessment years prior to effective date-Proportionate allocation- Court cannot provide own basis and proportions for apportionment in appeal- Interpretation of meaning of word Ship in provision.[S.80I(3), 80I(6),260A]

S. 68 : Cash credits- Cash deposit in the bank-No reasonable explanation- Addition is affirmed. [S.260A]

S. 37(1) : Business expenditure-Increase in payment to director- Company approved on 30-9-2004-Expenditure not deductible in Assessment Year 2004-05-The liability crystallised in the year when approved in AGM and not in an earlier year when the resolution was passed [S. 145, 260A]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions- Tribunal right in holding that disqualification would apply only to that part of income which was in violation of conditions-No substantial question of law- Circular No. 387 Dated 6-7-1984 (1985) 152 ITR 1 (St)- Search and seizure- Documents found in the course of search- Question of law admitted. [S. 13(1)(c), 260A].

S. 9(1)(vi) : Income deemed to accrue or arise in India- Royalty- Transfer of off-the-shelf- Software-Not assessable in India as royalty-DTAA-India- Israel. [S. 260A, Art. 12 (3)]

S. 45 : Capital gains – Interim order – Year of taxability of capital gains on compensation- Interest on compensation-Income from other sources – Delay of 404 days – Delay is condoned – The compensation and interest received by in pursuance of an interim order of the Bombay High Court cannot be taxed in the year of receipt – Addition is deleted – Compensation and interest can be taxed only when the final order is passed by the High Court . [ S. 45(5)(b) , 45(5)( c) ,56(2)(viii) Land Acquisition Act , 1894, S. 11, 18 ]

S. 272A : Penalty – Failure to answer questions – Sign statements – Furnish information – No notice were received – Sufficient and reasonable cause for non-attendance – Without providing sufficient time to reply cannot be treated as non-compliance u/s.272A(1)(d) -Penalty is deleted . [ S. 272A(1)(d) ]

S. 272A : Penalty – Failure to answer questions – Sign statements – Furnish information -The penalty cannot be imposed when AO expresses satisfaction with the assessee’s compliance.[ S. 272A(1)(d) ]